Bitcoin Drops to $8,030 as Cryptocurrency Market Continues to Slump

All Cryptocurrencies Decline
Today’s correction isn’t exclusive to bitcoin. All major cryptocurrencies including Ethereum, Bitcoin Cash, Ripple, Cardano, and Litecoin have declined in value, at a similar rate as bitcoin. Ethereum recorded a daily loss of 10 percent, while Ripple and Bitcoin Cash both decreased by just over 9 percent.

Some analysts have attributed the decline in price of cryptocurrencies to the ICO hearing participated by US representatives and government officials, in which several representatives including Carolyn Maloney, Representative for New York’s 12th congressional district, claimed that the cryptocurrency market is a bubble.

The negative comments of US representatives followed a report released by $81 billion investment firm Allianz, which claimed that bitcoin has no intrinsic value and therefore, could fall in price. “In our view, its intrinsic value must be zero. A bitcoin is a claim on nobody – in contrast to, for instance, sovereign bonds, equities or paper money – and it does not generate any income stream,” said the firm’s global economics and strategy head Stefan Hofrichter.

However, the lack of intrinsic argument often brought up by experts in the traditional finance industry has been refuted by both cryptocurrency and technology experts on many occasions, as CCN reported.

The combination of the US ICO hearing, Mt. Gox sell off, overall market performance over the past month, and negative media coverage are contributing to the decline in the value of the cryptocurrency market.

Despite the rising adoption of cryptocurrencies and innovative developments being led by the bitcoin, Ethereum, Cardano, and Litecoin open-source developer communities along with other blockchain projects, the lack of momentum in the price of major cryptocurrencies is fueling the price fall of bitcoin.

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