The prices of most of the top 10 cryptocurrencies have drastically dropped in the past one week following the ban imposed by various social media giants on the digital currency ads. However, most of the stocks reported an increase in the prices. According to the latest news from CoinMarketCap, the prices of all the top 10 currencies plunged by 7% within a short period of time following the recent ban of Twitter’s ads.
According to Google Finance data, major stock indices reported a huge recovery in the performance. The report also reveals that investing in cryptocurrencies such as Bitcoins remains highly speculative since the sector is still not regulated. For instance, Bitcoin prices plunged below $8,000 recently immediately after Twitter announced that it’s planning to stop the cryptocurrency ads.
Facebook and Google had already banned the digital currency ads from their platforms following persistent complaints from individual users and governments on the malicious activities associated with cryptocurrencies and the safety of the investor’s money in the industry.
In addition, the price fluctuations were influenced by the reports that emerged recently revealing that the US and Chinese officials are partnering to stop the trade war between stocks and cryptos from taking place, MarketWatch reported.
Tim Enneking, the Managing Director of Crypto Asset Management also claimed that the drastic drop in the crypto-assets and the rise in the US equity markets is directly linked to the recent trade talks between the US and China.
In addition, Mati Greenspan, the Senior Market Analyst for eToro, a social trading platform also described the cryptocurrency situation as the extension of the decline in crypto-asset prices that began late December last year. Other industry experts have linked the price losses to the recent G20 summit.
The prices of various Bitcoin-related stocks were reportedly down including the Long Blockchain, marathon Patent Gropu and Bitcoin Investment Trust. Bitcoin prices experienced a surge last year attracting an overwhelming number of investors flocking the sector but it started declining later towards the end of the year and at the beginning of the year.