Cryptocurrencies drop as high flyer ripple trades 50% below peak

Hong Kong: Ripple, one of the best-performing cryptocurrencies in 2017, led a retreat among peers on Wednesday as some investors reassessed whether last year’s gains were justified.

The digital currency tumbled as much as 24% to $1.61, extending its slump from a 4 January peak to more than 50%, according to data compiled by Bloomberg. Bitcoin and litecoin both retreated about 6%.

Ripple, created to help make cross-border payments easier, surged more than 300-fold last year as the investment frenzy surrounding bitcoin spread to other cryptocurrencies. Skeptics have warned of a bubble, while governments including China and South Korea have taken steps to clamp down on what they see as excessive speculation.

Wednesday’s decline may have been fuelled by profit taking after last year’s rally, said Neelabh Dixit, co-founder of Cryptomover in Hong Kong. Bloomberg