HONG KONG (Aug 14): Bitcoin dropped below US$6,000 and dozens of smaller digital tokens tumbled as this month’s selloff in cryptocurrencies showed few signs of letting up.
The largest digital currency fell as much as 6.2% to US$5,887 as of 10:44am in Hong Kong, the lowest level since June, according to Bloomberg composite pricing. Ether sank 12%, while all but one of the 100 biggest cryptocurrencies tracked by Coinmarketcap.com recorded declines over the past 24 hours. The total market capitalization of cryptocurrencies dropped to US$190 billion, from a peak of around US$835 billion in January.
While Bitcoin and its peers rallied in July on hopes that a Bitcoin-backed exchange-traded fund would attract new investors to the world of virtual currencies, US regulators have yet to sign off on multiple proposals for such a product. The letdown has coincided with growing concern that entrepreneurs who raised crypto-denominated funds via initial coin offerings are now cashing out of coins such as Ether.
Bitcoin has now dropped about 23% in August, extending its retreat this year to 58%.