Cryptocurrency markets plunged following a plummet in oil prices and further sell-off in stocks.
According to data from Coinmarketcap.com, the sell-off got worse as the day went on. The market capitalization or entire value of cryptocurrencies was down $26.43 billion from a day earlier at around 1:17 p.m. Singapore time.
Around the same time in 24 hours, the biggest cryptocurrency by value, Bitcoin, fell over 10%.
According to CNBC, the violent sell-off in the cryptocurrency market comes after international oil benchmark Brent crude futures plummeted 30% to $31.02 per barrel, its lowest level since Feb. 2016.
Saudi Arabia sparked slashing its official selling prices for oil after OPEC failed to agree with a deal on production cuts. This has led to fears of an oil price war. Brent has since pared some of its losses.
Meanwhile, stock markets in Japan and Hong Kong fell sharply while U.S. stocks are set for a steep drop at the start of trading on Monday.
The other big digital coins ethereum, XRP and bitcoin cash, posted double-digit percentage point losses.
Despite the losses posted Monday, bitcoin is up around 9% year-to-date.
According to CNBC, huge moves in cryptocurrency prices are not unusual. Their volatility is digital coins. This could be an opportunity to buy some bitcoin for market players.
Jehan Chu, co-founder of Kenetic Capital, an investor in blockchain start-ups said, “For those who have long term investment horizons, bitcoin is absolutely a buy during these dips”.
“We can expect more of this volatility sparked by macro health and financial shocks, but ultimately long term investments in the digital future and it’s key asset Bitcoin will be a winning strategy.”