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Crypto Wipeout Deepens to $640 Billion as Ether Leads Declines

Adam Haigh
EDITORS NOTE: IMAGE WAS CREATED USING A FISH-EYE LENS. Lights illuminate ethernet cables on mining rigs operating inside a shipping container converted into a mobile cryptocurrency mining farm, operated by BitCluster, at Rodniki Industrial Park in Rodniki, Russia, on Tuesday, Feb. 6, 2018. Cryptocurrencies have been pummeled by a wave of bad news, including the threat of more regulation from governments including the U.S., China, South Korea and India. Photographer: Andrey Rudakov/Bloomberg

The cryptocurrency bear market plumbed a fresh 10-month low, led by a slump in Bitcoin’s biggest rival.

Ether fell 10 percent Monday to $196.275. Bitcoin also started the week on the back foot after U.S. regulators suspended trading in two securities linked to cryptocurrencies. The market capitalization of digital coins has tumbled about $640 billion from its January peak, according to CoinMarketCap.com.

The move from the Securities and Exchange Commission on Sunday to halt trading of Bitcoin Tracker One and Ether Tracker One comes could deepen concerns that a broader adoption of digital assets will take longer than some had anticipated. Bitcoin fell as much as 3.7 percent early Monday and traded at $6,267.81 as of 8:40 a.m. in Tokyo.

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Cryptocurrencies struggled in August as U.S. regulators rejected another round of Bitcoin exchange-traded fund proposals and last week prices came under pressure amid a report Goldman Sachs Group Inc. was pulling back on plans to set up a crypto trading desk. The Bloomberg Galaxy Crypto Index is down more than 72 percent this year.

Ethereum co-founder Vitalik Buterin told Bloomberg over the weekend that the days of explosive growth in the blockchain industry have likely come and gone now that the average person is aware of its existence.

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