A visual representation of the cryptocurrency Bitcoin on November 20, 2018 in London, England.

Jordan Mansfield | Getty Images News | Getty Images

GUANGZHOU, China — Bitcoin and other digital coins tanked on Monday wiping off some $170 billion from the entire cryptocurrency market.

The market capitalization or value of the cryptocurrency market was $959.53 billion at 12:10 p.m. Singapore time, down from $1.1 trillion a day earlier, according to Coinmarketcap.

Bitcoin, the largest cryptocurrency, fell over 11% from a day earlier to $35,828.06, at around 12:15 p.m. Singapore time. Ether, the second-largest, was down around 15% to $1,126.72.

The sell-off in cryptocurrencies comes after a huge rally and perhaps signals some profit-taking from investors. Bitcoin is still up over 340% in the last 12-months and last week hit an all-time high just below $42,000.

Bitcoin’s resurgence has been attributed to a number of factors including more buying from large institutional investors.

And it has also been likened to “digital gold,” a potential safe-haven asset and a hedge against inflation. In a recent research note, JPMorgan said bitcoin could hit $146,000 in the long term as it competes with gold as an “alternative” currency. The investment bank’s strategists noted, however, that bitcoin would have to become substantially less volatile to reach this price. Bitcoin is known for wild price swings.

But some bitcoin critics — such as David Rosenberg, economist and strategist at Rosenberg Research — have called bitcoin a bubble.

Long-term bullishness around bitcoin remains however. Last week, Social Capital’s Chamath Palihapitiya said bitcoin could go above $100,000.

“It’s probably going to $100,000, then $150,000, then $200,000,” Palihapitiya told CNBC’s “Halftime Report.” “In what period? I don’t know. [Maybe] five or 10 years, but it’s going there.”

You May Also Like

Asia promotes crypto clarity amid regulatory uncertainty in the U.S.

High-rise buildings are seen near Victoria Harbour in Hong Kong, China, July…
‘Simple’ Snapchat App to Launch in Q1 2025, Says CEO; Announces Expansion of Spectacles to More Countries

‘Simple’ Snapchat App to Launch in Q1 2025, Says CEO; Announces Expansion of Spectacles to More Countries

Snap Inc. is planning to introduce a “Simple” Snapchat app next year,…

There’s a lot of talk about hydrogen’s potential. But transportation costs represent a big challenge

In this article IBE-ES ENR-DE Follow your favorite stocksCREATE FREE ACCOUNT Hydrogen…

Crypto.com lays off 20% of workforce after FTX collapse blunted ambitious growth

The exterior of Crypto.com Arena on January 26, 2022 in Los Angeles,…