The crypto market has been decimated this week losing an estimated $26B in market cap. The intense sell-off is one of the most notable in the history of the market. Bitcoin Cash (BCH) recorded the worst drop on the day, falling by more than 19 percent at one point. Within a seven-day span, BCH dropped by over 50 percent against the US dollar and by nearly 40 percent against BTC. Of the top ten, Cardano (ADA) is down 14 percent, Litecoin (LTC) 13 percent and Ethereum (ETH) and EOS 12 percent. The changing prices also saw Ripple’s XRP token rise above Ethereum to become the second most valued cryptocurrency behind only Bitcoin.
From August to November, the volume of Bitcoin (BTC) rarely surpassed the $4 billion, other than the first two weeks of this month. Bitcoin’s volume mostly stayed in the range of $3.1 billion to $3.5 billion, as the cryptocurrency exchange market demonstrated low trading activity in a period of low volatility.
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Also, USDT, the stablecoin known more commonly as Tether (USDT), saw a notable drop in its price to a low of $0.95 on crypto exchange Kraken, which offers one of the few trading pairs of the token against the U.S. dollar.
Tether, among other stablecoins, is intended to hold parity against the U.S. dollar, and data from CoinMarketCap shows that the token is trading in the $0.96-$0.97 range.
One of the drivers might be fear of regulation. Last Thursday, the SEC announced that it had settled charges against Zachary Coburn, the founder of decentralized exchange EtherDelta. The agency claimed that the decentralized exchange “operated as an unregistered national securities exchange,” a charge that left many exchanges and blockchain based projects in fear of similar action. The pockets of extreme selling have ensured as more details from this case trickled out.