Cryptocurrency selloff intensified after Twitter (NYSE:TWTR) imposed an advertisement ban on cryptocurrencies and related activities. Following in the footsteps of Google (NYSE:GOOG) and Facebook (NYSE:FB), Twitter management also see advertising of token sales and initial coin offerings (ICOs) harmful to consumers. The Twitter ban will also cover ads related to cryptocurrency wallet services and cryptocurrency exchanges.
“We are committed to ensuring the safety of the Twitter community. As such, we have added a new policy for Twitter Ads relating to cryptocurrency,” the company says. “Under this new policy, the advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally.”
Bitcoin price (BTC) plunged sharply after Twitter announced its ban; BTC price fell below the $8,000 level early today before paring losses later in the trade.
The total cryptocurrency market capitalization plunged to $300 billion at present, down substantially from an all-time high of $850 billion. Bitcoin accounts for 44% of total market capitalization while altcoins comprise 56% of market cap. The downtrend in altcoins has added to the massive drop in total market capitalization. Altcoins are declining at a faster pace than bitcoin, amid increasing regulatory concerns in Asian markets.
Not Just Twitter But Raw Emotions Are Impacting Prices Too
Besides from Twitters ban, the cryptomarket was under pressure over the last month with market reports that wouldn’t have any fundamental impact on prices. Analysts believe the addition of new retail investors will create hype in the crypto markets.
“As new retail investors enter cryptocurrency, a large portion of them are trading on raw emotion,” said Timothy Tam, co-founder of crypto-market intelligence platform CoinFi
Spencer Bogart, the partner at Blockchain Capital, also showed his concerns on larger than the expected reaction from market participants. He said, “Given that the larger and more significant platforms have already made this move, I wouldn’t expect Twitter’s news to have much of an effect,” he said.
Featured Image: Depositphotos/© denisismagilov
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