March was not a good month for cryptocurrency as the numbers show it slumped a whopping 29.2 percent from the beginning of the month until the end. The slump is a result of increased scrutiny and regulations worldwide regarding the virtual currency, according to an index released by BarclayHedge, a data provider. The Cryptocurrency Traders Index, which was just started in 2018, provides an equal-weighted index of 19 funds that trade in cryptocurrencies, including bitcoin.
They reported on Wednesday that the index dropped 43.1 percent since the beginning of the year when they began tracking the numbers. Bitcoin is very volatile and hit a high of slightly under $20,000 in December of 2017 and has dropped to as low as $5,920 at one point. Wednesday marked an increase for Bitcoin as its value increased 4.2 percent to $8,232, but there’s no guarantee that it won’t drop back down.
The cryptocurrency market has been hit hard this year due to an increase in the amount of regulation being imposed and worries that the market is in a bubble and going to burst. People have their opinions on the future of cryptocurrency, but no one knows for sure how it is going to fluctuate because of how volatile its value is.
Data obtained from Autonomous NEXT, another financial technology data trackers, affirms the data from BarclayHedge. There has been a decline in the number of initial-coin-offerings, which experienced a dip in February with a slight increase in March regarding fundraising. These are a way for start-ups to create tokens or currencies to sell to investors. The slump indicates that public crowd-funding is not as effective now as it was during the fall and winter when values were increasing significantly and Bitcoin was in the news everywhere. The number of crypto funds Autonomous NEXT tracks has increased modestly so far this year.
The company reported that the numbers are not keeping up with expectations, primarily because it’s not an easy environment to raise money in. People are not speaking about cryptocurrency as much as they were, which leads to less public awareness and fewer sources to draw funds from.