What next after cryptocurrency bubble bursts?

The cryptocurrency bubble has burst.

In January, the total market capitalisation of cryptocurrencies had climbed beyond $800bn, up from just $18bn a year earlier according to data provider CoinMarketCap. Now the market has lost three-quarters of its value to stand at $200bn.

The shrinking market value of the novel digital assets comes alongside rising volatility in mainstream financial markets such as equities, offering traders other opportunities to profit on fluctuating asset prices.

“The hype has gone, the punters and trader types have gone,” said Simon Taylor, a former Barclays VP and co-founder at financial technology consultancy 11:FS.

Bitcoin, the original and most valuable cryptocurrency, has plummeted from $19,000 in December to bump along at a $6,000-$8,000 range since June. Advocates see bitcoin, which unlike fiat currencies is not controlled by a central authority, as a store of value. But its short history has been marked by rapid rallies and sharp drops.

Scott…