Digital currencies such as Bitcoin (BTC) blasted like a bomb as prices increased to almost $20,000 in December last year. But just like a dying star, the digital currency market may currently be experiencing a collapse and an implosion.
As per the latest report from trusted technology research group, the digital currency sector is on the edge of collapse.Key Crypto Market Metrics
The research report indicates some important market metrics, most (all) of which show digital currencies as being on a downtrend helix.
“During Q1 2018, cryptocurrency transactions totaled just over $1.4 trillion, compared with less than $1.7 trillion for 2017 as a whole,” the report notes. “However, by Q2 2018, transaction values had plummeted by 75 percent, to under $355 billion.”
In fact, a 47% fall is anticipated in transaction values for the third quarter of this year compared with the former quarter.Impact of Market Pressures
The research says economic ambiguousness normally emboldens growth, and yet "tensed China-US trade relations and Brexit-related troubles" was unable to awaken any demand and interest in the digital currency sector, according to a Bloomberg report.
24-hour BTC transaction volumes have dropped from around 360,000 daily towards the end of last year to nearly 230,000 in September this year. 24-hour transaction values are down from $3.7 billion to below $670 million over the same time.
The research has put the blame on different market pressures for this event and the report also highlights how the market fights against a prohibition on ICO advertising, price manipulation from crypto exchange platforms and tougher regulations from credit card firms.
Digital currencies such as Bitcoin (BTC) blasted like a bomb as prices increased to almost $20,0...