Bitcoin sinks below $7,000 to end a dismal Q1 2018
What's the story
Bitcoin, the world's biggest cryptocurrency by market value, posted its second-worst first quarter ever since it started trading regularly in 2010.
The cryptocurrency's price fell from $13,412.44 on January 1 to $6685.00 on April 1, to record a staggering 50% decline in value.
So far in 2018, Bitcoin has lost of over $110 billion in market capitalization.
Here's more.
Domino Effect
Led by Bitcoin's crash, entire cryptocurrency market slumped
According to coinmarketcap, the total market value of the cryptocurrency market declined 54% in Q1 2018 to $277 billion.
Ethereum ended the quarter around $394, down 47% from the Q4 2017 when it closed at $743.
Likewise, Ripple which traded as high as $3.84 on January 4, ended the quarter at 52 cents, down 78% from its December 31 close of $2.37.
Catalyst for Decline
From regulations to banned online ads for ICOs
The regulatory pressure mounting in cryptocurrency space and the recent banning of online ads for controversial ICOs by Facebook, Google and Twitter have resulted in strong headwinds for the cryptocurrencies.
Additionally, cyberattacks have also affected investors' trust. Japanese exchange Coincheck had lost $500 million of Bitcoin and other cryptocurrencies in January. In 2014, Mt Gox lost $450 million worth of Bitcoins and declared bankruptcy.
Caught in headwinds
Bitcoin transactions have halved but investors enjoy profits
As the cryptocurrency market faced headwinds in Q1 2018, trading also sunk over the quarter. Daily bitcoin transactions which were over 400,000 in Q4 last year, sharply fell below 200,000 in this quarter.
One must also remember that Bitcoin rallied 1,400% last year and despite this quarter's slump, investors who have owned the token since 2017 have enjoyed gains of nearly 650%.