Cryptocurrency market update: $25 billion wiped out, crypto hedge funds shutdown impends
|- Ethereum price stands out with a 12.49% drop on the day to trade at $129.
- If a reversal does not occur, crypto hedge funds will be forced to shut their doors.
The crypto currency meltdown has finally towered upon us all. Bitcoin is down 9% on the while trading at $4,307. Ethereum price stands out with a 12.49% drop on the day to trade at $129. Ripple, which had been referred to the HODL digital asset, has broken the previous support at $0.44 and is now testing the next support target at $0.427. Other coins like Bitcoin Gold (BTG) is down 29.52% and NEO is exploring the levels below $10.00, besides it is recording a 17.22% drop. The entire market is in the red at the time of press and the trend appears as though it will continue in the short-term.
According to the data on CoinMarketCap, $25 billion has been wiped out from the market in a 24-hour period. Bitcoin Cash is falling like deadweight in the air, besides it is believed to have been the trigger to the selloff in the market. At present Bitcoin Cash is trading at $219 following a 19% drop on Tuesday. It’s hard fork tokens, Bitcoin ABC and Bitcoin SV have already started trading on various exchanges but their impact is minimal to the larger market.
The recent comments from one influential person in the crypto space, Morgan Creek suggest that the declining prices in the market are not favorable to the performance of crypto hedge funds. Creek, who is the founder of Anthony Pompliano believes that if a reversal does not occur, crypto hedge funds will be forced to shut their doors. Pomp explained in a blog post:
“We have seen 50-80% decreases in net asset values in some funds since then. This means these fund managers will not receive a performance fee in 2018, which drastically reduces the income of the individual manager”
Creek believes that these firms will be forced to double the funds in the assets they hold in order to stay afloat. Otherwise, the only option will be to return the funds to the customers and wait until the market stabilizes before they reopen the doors again.
More:
Ripple price stable as Bitcoin bottoms: XRP heads for the number one spot
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