OPEN APP
Home >Market >Stock-market-news >Crypto’s 80% plunge is now worse than dot-com crash
The MVIS CryptoCompare Digital Assets 10 Index has extended its collapse from a January high to 80%. Photo: iStock
The MVIS CryptoCompare Digital Assets 10 Index has extended its collapse from a January high to 80%. Photo: iStock

Crypto’s 80% plunge is now worse than dot-com crash

Crypto's tumble has surpassed the Nasdaq Composite Index's 78% peak-to-trough decline after the dot-com bubble burst in 2000

Hong Kong: The Great Crypto Crash of 2018 looks more and more like one for the record books.

As virtual currencies plumbed new depths on Wednesday, the MVIS CryptoCompare Digital Assets 10 Index extended its collapse from a January high to 80%. The tumble has now surpassed the Nasdaq Composite Index’s 78% peak-to-trough decline after the dot-com bubble burst in 2000.

Like their predecessors during the Internet stock boom almost two decades ago, cryptocurrency investors who bet big on a seemingly revolutionary technology are suffering a painful reality check.

The virtual-currency mania of 2017 — fuelled by hopes that Bitcoin would become “digital gold" and that blockchain-powered tokens would reshape industries from finance to food — has quickly given way to concerns about excessive hype, security flaws, market manipulation, tighter regulation and slower-than-anticipated adoption by Wall Street.

Crypto bulls dismiss negative comparisons to the dot-com era by pointing to the Nasdaq’s recovery to fresh highs 15 years later, and to the Internet’s massive impact on society. They also note that Bitcoin has rebounded from past crashes of similar magnitude.

But even if the optimists prove right and cryptocurrencies eventually transform the world, this year’s sell-off has underscored that progress is unlikely to be smooth.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
×
Edit Profile
My Reads Redeem a Gift Card Logout