The cryptography market is going arm in arm again, that's why
The cryptocurrency market is bleeding for the second consecutive day, with prices of the most popular two-digit drop in the last 24 hours.
Bitcoin, the largest cryptocurrency by market capitalization, is down 12 , 4% in this period according to CoinMarketCap and currently trading at $ 6,426. Other currencies are getting worse further: Ethereum is down 20.5%, Ripple is down 13.3%, Bitcoin Cash down 20.1% and EOS down 22.3%
For Ethereum, the second largest currency by market capitalization, this is the lowest point of the year. The cryptocurrency has not been so low since August 2017.
Overall, the market capitalization of all cryptocurrencies combined is currently at $ 202.9 billion and threatening to reach the minimum of this year by about $ 190 billion.
There are several probable reasons behind the accident. On Wednesday, Business Insider reported that Goldman Sachs implemented plans to launch a suspended crypt desk. Goldman Sachs was one of the leading banking institutions that showed real interest in Bitcoin, having funded Bitcoin's startup Circle in 2015, and reportedly (although not officially) pondered the idea of launching a desk of cryptography from the end of 2017.
While the fear that institutions are losing interest in cryptocurrencies is a valid reason for prudence, cryptocurrency traders seem to be more concerned about the dangers that lurk in the shadow of the Black Silk Road market. One Redditor has tracked more than 111,000 thousand bitcoins (worth over $ 700 million) associated with Silk Road, which have recently been transferred to portfolios of various online platforms, perhaps with the intention of selling.
Huge quantities of bitcoins that are moved to exchange portfolios give traders smoothies, as it probably means a lot of selling pressure on price.
We saw something similar in April when it was revealed that a trustee for the now-gone crypto-exchange Mt Gox continued to sell large amounts of bitcoins, with much more to sell.
In particular, at $ 7,951, the price of Bitcoin was not that far from today's price, but since then the price of Ethereum has more than halved, from $ 592 to the current price of $ 226. Reason for this is probably the sale of pressures from numerous startups that have been successfully financed through ICO, and are now selling the ether they have raised.
In any case, the upward momentum of the encrypted market started in mid-August was abruptly interrupted. The cryptic world still eagerly awaits SEC's decision on some proposed Bitcoin ETFs, which should arrive at the end of September. A positive ending could finally give the cryptic market the calcium in the football it needs, while a negative one will probably drive even lower prices.
Disclosure: The author of this text has or has recently owned a number of cryptocurrencies, including BTC and ETH.