The encrypted market sets a minimum from the beginning of the year to today, Ethereum approaches two figures
With great consternation of cryptocurrency investors around the world, while Black Friday, the international incarnation of capitalism, has come closer and closer, Bitcoin (BTC), Ethereum (ETH) and a majority of altcoin have continued to down.
This aftershock, which recently sent BTC below $ 4,300 and sent Ethereum to $ 120, arrives after a week of almost uninterrupted selling presses that began on Wednesday 14. As you probably know, on the aforementioned date, which was dubbed the "eve of Bitcoin Cash's hard fork", the market experienced an influx of sales after weeks of non-action, sending the BTC and ETH to collapse through alleged levels of support.
Although the cryptocurrency market expressed some semblance of stability after the sell-off, on Thursday afternoon around one night (GMT) on Friday, BTC collapsed further, rapidly falling below the $ 4,500 base set in the previous days. . At the time of writing this book, BTC has a value of $ 4,250 on the downside, with a decline of 78% compared to the historic maximum of $ 20,000.
Today's move marks the second time that BTC has fallen below $ 4,300 in recent memory. Ethereum closely followed the "godfather" of the cryptocurrency, experiencing a 7% drop from $ 130 to $ 120, approaching Arthur Hayes' vision of ETH becoming a "double-digitized sweetie".
As usual, the plateaus closely followed the BTC, ETH and XRP (up to $ 0.415 and -7% per day), the three undisputed market leaders, with household names in this market that reported losses of over 10%, not a unfamiliar view last week.
Because of this new wave of selling pressure, the aggregate value of all cryptographic assets has fallen to a low from the start of the year to $ 137 billion, the lowest since this figure has been since mid-September 2017 … ouch.
Once again, as with previous withdrawals from last week, it was not entirely clear whether there was a catalyst (i) behind these periods of apparent capitulation. However, many have tried to speculate, calling attention to a number of factors, including:
- The controversial hard fork of Bitcoin Cash, which may have instilled more fear, than confidence in the cryptic investors worldwide
- The turn of the SEC on ICO and token has meant titles, catalyzing the collapse of the value of Ethereum
- A hidden / shaded institutional sale
- Bakkt will postpone its Bitcoin (BTC) futures until January 24th
Susquehanna's Bart "Crypto King" Smith, an openly supported cryptocurrency and believer stated that as it stands, the relative uselessness of ramps ramps is directly hindering the adoption of cryptocurrencies.
Smith elaborated on this point, before following another catalyst, observing:
A wealthy individual of the GI generation is not about to take a high-resolution photo of their driving license to send it to a website and then send them money. They want to invest in Fidelity or in Bank of America, so this led to the second problem, which is without the capital ramp, liquidity was very low. And so we saw a stable price during the summer … [but] when those sellers arrive, there is no liquidity to absorb [those sales].
But, as mentioned, it has not been made clear whether these factors have really influenced the market, since many experts in the field have said that the constituent elements of the cryptographic market have just been over-bought, simply put, neither more nor less.
Title Image Courtesy of Janko Ferlič on Unsplash