From a risk-on perspective, the global financial markets took a beating this week. Digital assets like bitcoin, EOS and bitcoin cash plunged anew while equity prices slid back into the abyss following a strong end to November. Seasonal influences that normally accompany the holiday season have thus far eluded the market, leaving investors with a considerable loss. Market participants with exposure to cryptocurrencies, stocks and ETFs have likely seen their holdings wither away as a result of the bearish trends taking shape.
Crypto Crash Intensifies
The carnage that has engulfed the cryptocurrencies since mid-November intensified on Friday, as bitcoin and the leading altcoins plunged to new yearly lows. The combined value of all cryptoassets bottomed at $106 billion earlier this morning, according to CoinMarketCap. Over the past four weeks, the market cap has lost more than $100 billion.
Since last Friday, losses among the top-ten cryptocurrencies have ranged between 7% and a staggering 40%. Bitcoin cash occupied the latter, as prices fell below $100 for the first time in its history. Bitcoin SV and Tether’s USDT stablecoin were the only two cryptocurrencies to emerge from the weekly rout unscathed. This led bitcoin SV to briefly overtake bitcoin cash and Tether as the world’s fifth-largest blockchain.
Bitcoin Mining Difficulty Falls
Bitcoin on Friday fell below $3,400 for the first time since September 2017, with price action and trading volume signaling that a bigger pullback toward $3,000 is likely. At this rate, mining bitcoin is a money-bleeding endeavor that offers little return on investment. Bitcoin’s mining difficulty peaked in mid-October but has since fallen by a whopping 24%, according to Blockchain.com. The following chart highlights how drastically mining difficulty has fallen in recent months.