On November 15, 2018, the value of the crypto markets fell from $210 billion to $183 billion, a loss of more than $27 million in less than 24 hours.
The most popular currency, Bitcoin, fell by around 11% to around $5,500, the lowest in this entire year.
This drop in the values can be seen financially, especially in major digital asset markets like Japan and South Korea.
SBI Holdings, one of Japan’s major banks, which also operates SBI Ripple Asia, saw a significant decline in their stock price during the bearish run of the crypto markets.
Many experts and traders have stated that the main reason for the drop in financial institutions is because investors fear that cryptocurrency ventures could see a stagnant few months in the mid-term due to the correction. The drop below the almost stable $6000 mark also cites as a reason for investors leaving the market.
Even Fundstrat, the Tom Lee-led Wall Street firm, which tends to be positive in regards to the mid to long-term price trend of major cryptocurrencies, stated that the large correction of the crypto market experienced on November 15 could lead digital assets to endure a consolidation period lasting weeks to months.
Fundstrat Global Advisors partner, Rob Sluymer said:
“This week’s breakdown produced significant technical damage. That will likely take weeks, if not months, to repair to create a durable enough price ‘structure’ to support a multi-month rally.”
Monex, a Tokyo-based company with ownership of Coincheck, suffered the steepest drop in stock price, even after the re-opening of Coincheck’s trading platform.
The bear run of these financial institutions is expected to be a short-term issue. Once the markets stabilizes at a lower range, the crypto market’s effects on the companies is also expected to subside.
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