More than $128 billion in cryptocurrency market capitalization was wiped off in a matter of hours on Thursday after Bitcoin crashed eight percent, CNBC reported.
Barely six months ago, Bitcoin was enjoying its historic high against the US dollar, and together cryptocurrencies were enjoying market capitalization that was leaving tech companies, including Apple, behind.
Not because Bitcoin is linked to them, but because it falls into the same category of assets as stock, and monetary policies have a similar bearing on Bitcoin as they do at Nasdaq.
While this was done on Wednesday, cryptocurrencies and stock markets saw a slight surge in value after the Fed dismissed rumors of a further increase in interest rates, CoinDesk reported.
The cryptocurrency may have fallen below a critical level when it crossed $37,500, and this could test its valuation to new lows, with a valuation of $25,000 also being a possibility.