During the last week more than $30 billion have been wiped off from the overall cryptocurrency market capitalization. The entire cryptocurrency market has fallen below $200 billion. Bitcoin dropped from trading around $8000 and dipped below $7000 for the first time since May 2019. Most cryptocurrencies are down between 5%-20%. Ether fell by 20% to $145 and XRP fell by 14% to $0.21. Bitcoin Cash fell by 19% to $208. Bitcoin.com the firm owned by Roger Ver, Bitcoin Cash promoter has announced it is planning to launch $200 million fund to promote the growth of BCH ecosystem. The fund will invest in businesses like payment gateways, remittance processors, wallet, merchants and acquirers according to the announcement.
Bitcoin is known for its wild price swings. Just last month Bitcoin rose by 40% in two days, which was the third biggest daily price gain in Bitcoin’s history. In the last few days Bitcoin dropped by 20%. Several events might have had a big impact on the market. The People's Bank of China's Shanghai headquarters released a public warning against any form of Bitcoin or cryptocurrency trading. Another potential factor that might explain this drop is due to mining revenues decrease. As the price of Bitcoin drops, miners need to sell more of their mining reward to cover their cost.