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Money Here's why other markets didn't care about bitcoin's latest plunge

20:03  05 january  2018
20:03  05 january  2018 Source:   businessinsider.com.au

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  Bitcoin is surging into Boxing Day A bitcoin was worth $US15,338 ($AU19870.38) at 8.20 a.m. GMT on Boxing Day. The cryptocurrency had lost almost 2% of its value on Christmas day. The movement was a modest lost after much sharper gains earlier in the week, when bitcoin plummeted from an all-time high of $US19,843 ($AU25706.61).

While bitcoin ’ s price plummeted by 40% before bouncing in late December, other riskier assets such as stocks barely raised an eyebrow. Given the lack of reaction to the either the plunge or bounce in bitcoin in late December, Walsh says this gives her more confidence that even if the price of bitcoin

Here ' s why futures trading didn ' t crush bitcoin . What went wrong with my thesis of a bitcoin plunge once futures trading began? I assumed that institutional investors who've kept to the sidelines this entire time would be immediately enticed by the opportunity to bet against bitcoin .

  Here's why other markets didn't care about bitcoin's latest plunge © Provided by Business Insider Inc

If you're concerned that a collapse in the bitcoin price could lead to turmoil in other financial markets, this chart should put your mind at ease.

From Capital Economics, it shows the percentage change in various asset classes -- including bitcoin -- from December 18 until January 3 this year.

a screenshot of a cell phone© Provided by Business Insider Inc

While bitcoin's price plummeted by 40% before bouncing in late December, other riskier assets such as stocks barely raised an eyebrow.

For all the chatter about the potential for movements in bitcoin to spill over into other asset classes, the reality was there was no real reaction to the sharp and sudden plunge.

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  Bitcoin is losing its dominance over the crypto market Bitcoin had an incredible run in 2017, but in one respect the coin is worse off than it was at the beginning of the year. Its share of the cryptocurrency market has more than halved since January 2017.2017 was an incredible year for bitcoin.

The North American Bitcoin conference has stopped accepting bitcoin payments for tickets due to fees and congestion associated with the cryptocurrency.While interest in the digital currency has exploded over the last 12 months, pushing its price up from $US800 to $US15,000

Here ' s a look at the five largest cryptocurrencies by market capitalization, and how much each has changed over the past 24 hours, as well as during the month of January. Most major cryptocurrencies, including bitcoin (BTC-USD), performed poorly in January.

To Kerrie Walsh, assistant economist at Capital Economics, there are two simple reasons to explain why other markets didn't move: Bitcoin's market capitalisation is still far too small and its movements are often triggered by specific factors that aren't relevant to other asset classes.

Bitcoin's share of the crypto market hits an all-time low as 'alt-coins' go wild

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Bitcoin plunged sharply on Sunday afternoon, and it currently sits at about ,750 -- close to the 2018 low it touched in April. And it's not just bitcoin that got hammered: Most other cryptocurrencies are in the red, and many are faring even worse. Here ' s a look at the latest cryptocurrency prices, and With that in mind, there are a few reasons why the resultant plunge in bitcoin ' s value makes sense.

Here ' s the latest cryptocurrency price action and why cryptocurrency investors should care that Tax Here ' s a look at the 10 largest cryptocurrencies by market capitalization, and how much each has changed (Note: The article is about bitcoin (BTC-USD) profits, but the same rules apply to other Compare Brokers. Current. Here ' s Why Bitcoin Could Plunge This Week @themotleyfool #stocks.

"First, the market capitalisation of bitcoin is still too small for it to have any serious consequences for wider financial markets," she says.

"At around $250 billion, the total value of all Bitcoins in circulation is dwarfed by the size of the US stock market at $27 trillion and the value of the world’s gold at $8 trillion.

"What’s more, although the launch of bitcoin futures in December raised concerns that the cryptocurrency could eventually become more deeply integrated in the financial system, this has not been the case so far. Trading volumes for these futures remain minuscule compared to those of futures for more conventional assets."

Along with a small comparative size compared to other asset classes, Walsh says movements in bitcoin are also dictated by specific factors that are irrelevant to other markets.

"[The] movements in the price of Bitcoin do not seem to be triggered by economic factors. Instead, they have more to do with events in the cryptocurrency community." she says.

"Indeed, the latest drop in the price of Bitcoin seems to have been prompted by attempts to hack cryptocurrency exchanges and the threat of increased regulation."

Given the lack of reaction to the either the plunge or bounce in bitcoin in late December, Walsh says this gives her more confidence that even if the price of bitcoin were to plummet further, other financial markets would not suffer.

One corner of the stock market sees even crazier trading than bitcoin .
Bitcoin is known for its wild price swings, but there's one sector of the stock market that is even crazier, according to Don Ross, the chief executive officer of PDQ Enterprises.Its wild price swings have gripped the attention of Wall Street and make most moves in US equities look trivial.

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