Ether's price, Ethereum's native cryptocurrency, has declined by 15 percent in the last 24 hours to $ 305, as other large cryptocurrencies like EOS have declined 13 percent.
Tokens followed the price movement of Ethereum, EOS, Ripple and other major cryptocurrencies, recording losses of 10% to 20% from the US dollar. But most tokens showed more intense bearish movements, with steeper drops.
Most investors and analysts have struggled to offer specific reasons to support the sudden drop in the price of the major cryptocurrencies on August 11. Some have focused on the saga of the ETF (Bitcoin exchange traded fund), but as the positive development and news in the cryptocurrency sector have barely affected the cryptocurrency trade, it is highly unlikely that the 39; Bitcoin ETFs the news has dropped the market.
Since February, Bitcoin has demonstrated a bizarre but obvious pattern. Bitcoin would plunge to $ 6,000, start a corrective rally, test the resistance level of $ 10,000 and fall back to $ 6,000. In the last six months, Bitcoin has repeated this procedure three times, all between $ 6,000 and $ 10,000 and on rare occasions, plunging under $ 6,000 and exceeding $ 10,000.
it is quite possible, following the results of the Tabb Group, that a much larger market than the global cryptocurrent exchange market has continuously influenced the medium-term movement of BTC , particularly in the range of $ 6,000 to $ 10,000.
estimated that the over-the-counter (OTC) market is two to three times larger than the cryptocurrency trading market, which is understandable given that large-scale investors do not trade digital assets in the foreign exchange market at due to lack of liquidity.
Another interesting aspect of the recent price movement of BTC is that positive developments such as the entry of the New York Stock Exchange, Microsoft and Starbucks in the cryptocurrency sector have a minimal impact on the price trends of BTC.
Thus, it is plausible that past events such as the rejection of Winklevoss Bitcoin's ETF and the delay of VanEck Bitcoin's ETF had no impact on the price, but investors started a market justification to produce clarity in the opaque, volatile and unstable cryptocurrency market.
Where do Ethereum go and tokens?
In the last year, Bitcoin and Ether tended to climb up and down similarly, while Ripple, EOS and token have experienced similar movements.
However, since the beginning of August, every other cryptocurrency aside from Bitcoin has experienced strong downward movements, due to the too strong bearish trend in the market.
If Ether continues to fall at this rate, regardless of its relatively strong performance against the US dollar, in contrast to other large capitalization cryptocurrencies in recent months, tokens like Ontology, 0x, ICON and VeChain will likely fall substantially wider.
In view of the rapid rise in Bitcoin's dominant position index and the increase in the Tether stablecoin volume supported by the US dollar, in this period, the investments in token and high risk, the operations of high returns are probably not worth the risk.