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Cryptocurrency drops - has the market lost its mojo?

Cryptocurrency drops - has the market lost its mojo?
© Kirill Ivanov | Dreamstime.com

I'm sure by now you've at least heard of the term cryptocurrency. Bitcoin was all over the headlines last year when investors drove the price up to nearly $20,000.

That led to investors scrambling, trying to guess which cryptocurrency would be the next to have that kind of success. There are plenty others to choose from, but none have reached that level of prosperity.

The cryptocurrency market did skyrocket earlier this year though, and hit an all-time high. But the tide has turned and things aren't looking so good these days.

Is the cryptocurrency windfall over?

We have some bad news for all the cryptocurrency investors out there. It looks like the bubble might be bursting for that market.

If you remember, Bitcoin peaked at almost $20,000 last December. It's been in the decline ever since and is now selling for just a little over $6,000.

But it's not just Bitcoin that is slumping, the whole cryptocurrency market seems to be trending down. The second largest one is Ether, and it lost 11-percent of its value in just one day this week. In fact, it's down nearly 30 percent over the last week and has hit a 16-month low.

The entire cryptocurrency market dropped to a 10-month low this week too, with a total market value of about 197 billion dollars. That's a staggering drop in value from its peak in January at almost 640 billion.

The market was dropping so fast that the U.S. Securities and Exchange Commission (SEC) temporarily suspended trading on Sunday in two securities linked to cryptocurrencies. The SEC said it suspended trading due to investor confusion related to the assets. The suspension will last through Sept. 20.

Some of the decline is thought to be due to the fact that it's taking longer for a universal acceptance of cryptocurrencies. It's still difficult to find businesses that let you use them to buy things. We'll just have to wait and see if the market picks up again when that changes.

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