Bitcoin News

Smaller cryptocurrencies feel pain as criticism of Facebook’s Libra grows



By Tom Wilson

LONDON (Reuters) – hasn’t been the only casualty of the backlash by the world’s major economic powers against Facebook’s plans for a cryptocurrency, with smaller digital coins also feeling the burn.

Bitcoin has slumped around 30% from 18-month highs of nearly $14,000 touched after Facebook’s move, following a growing chorus of concern among regulators and politicians from the United States to Europe at the social media giant’s plans.

And the so-called altcoins have fared even worse.

The second-biggest coin () has slumped by nearly half. The third largest, Ripple’s (), is down by around 40%, while () and () have slumped by 40% and 42% respectively.

On Wednesday, G7 finance chiefs cast a cloud over prospects for Facebook’s Libra digital coin, insisting tough regulatory problems would have to be worked out first.

The Bank of Japan governor said a G7 task force looking at cryptocurrencies like Libra would likely grow to include a broader range of regulators beyond the bloc.

Facebook (NASDAQ:) faced in the U.S. more questioning by lawmakers after a bruising first bout on Tuesday, when senators from both parties condemned the project.

Where bitcoin goes, altcoins tend to follow.

Price moves for smaller coins have been closely correlated with their bigger cousin through crypto’s first decade, even as altcoins seek to gain prominence among investors and real-world usage.

After Facebook unveiled its Libra cryptocurrency, bitcoin soared as much as 55% in just nine days as investors bet the social media giant’s gambit would herald mass adoption of cryptocurrencies. The top four altcoins also soared, climbing between 10% and 33%.

“When things are going up bitcoin tends to outperform and when crypto goes down the altcoins tend to take larger losses,” said Mati Greenspan, an analyst at eToro.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: investing.com
View original post

Show More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close