The market capitalization of digital coins has tumbled about $640 billion from its January peak, according to CoinMarketCap.com.
Ether fell 10% Monday to $196.275. Bitcoin also started the week on the back foot after US regulators suspended trading in two securities linked to cryptocurrencies.
“The temporary suspension of these products led to an initial knee-jerk reaction,” said Ryan Rabaglia, head trader at cryptocurrency dealing firm Octagon Strategy in Hong Kong. “But ultimately, it’s just another obstacle for the market to overcome.”
Cryptocurrencies have declined for five of the past six weeks amid concern that a broader adoption of digital assets will take longer than some had anticipated.
“The blockchain space is getting to the point where there’s a ceiling in sight,” Mr. Buterin said in a September 8 interview with Bloomberg at the Ethereum Industry Summit conference in Hong Kong.
According to Buterin, the days of explosive growth in the blockchain industry have likely come and gone now the average person is aware of its existence.
Ether may fall further to a support target of $US155 as it faces increasing competition, market volatility, and a maturing industry.