Bitcoin - What Goes Up Must Come Down

The currencies have come off their lows but analysts said the sell-off was probably not over. None of the top 100 cryptocurrencies in the coin market cap have increased in past 24 hours except DigixDAO. Bitcoin has traded to a two month low of $7,910, according to data available from the Luxembourg-based Bitstamp exchange. It clawed back some losses and was down around 4.1 percent at $8,623.50 in mid-morning NY trading.

Bitcoin rallied more than 1,000 percent previous year as speculators piled in. And if a payment solution can help the congestion, bitcoin may once again become an effective payment network, Moskowitz said. In the 24 hours ending at 6:45 a.m. ET Friday, Bitcoin fell over 17%, Ethereum fell more than 32%, Ripple was down 38%, and Bitcoin Cash was down over 27%. Ethereum was last down 18.2 percent, at $913.37, while Ripple last traded at 80 USA cents, down 16.7 percent. India, which has likened the market to a Ponzi scheme, on Thursday vowed to eliminate their use.

The charts for cryptocurrency market capitalizations are a sea of red right now.

Social media giant Facebook announced this week that it will ban ads promoting "financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency". It is better to analyze the technology behind such crypto coins before investing in it.

A massive US$530 million hack of a Japanese cryptocurrency exchange last week renewed worries about the security of the industry.

Those backers believe cryptocurrencies and the "blockchain" technology underpinning them will transform the way money is stored and transferred, upending the conventional banking system.

Following Jaitley's announcement that India will ban cryptocurrencies, bitcoin, ripple and ethereum prices dropped dramatically. The last time was from November 2014 to January 2015.

  • Fernando Stephens