Following the release of an important partnership with the banking giant of $ 80 billion Banco Santander, the price of Ripple (XRP) decreased by more than 8%.
In the last 24 hours, the cryptocurrency market valuation has decreased by about $ 9 billion, as Bitcoin has dropped below the $ 6,500 for the first time in the last seven days, recording a 2% decline in value.
The low volume was the problem
Yesterday, on October 2, CCN reported that the low volume of Bitcoin is a concern for traders and could have a negative impact on the short-term trend of Bitcoin.
"Bitcoin's volume remains fairly low at around $ 4 billion, down more than 30% since mid-September on Coincap, the cryptocurrency market data provider of the popular ShapeShift digital asset trading platform, which eliminates trade suspected of having false volumes, the daily trading volume of Bitcoin is estimated at around $ 2.6 billion, "reads the CCN report.
It would have been possible for the dominant cryptocurrency to engage in a short-term upward movement if its volume had rebounded by around 15-20 percent. But, in the last 24 hours, the daily trading volume of Bitcoin has remained at $ 4 billion on CoinMarketCap and $ 2.77 billion on Coincap.io.
The volume of Bitcoin recorded a slight gain of around 1%, which had no significant effect on the short-term trend of the encrypted market.
The sudden decline in the price of XRP after the Swell 2018 conference also contributed to the downward trend of the major cryptocurrencies.
In the cryptographic market, most digital resources tend to experience a pump before the release or materialization of an important announcement such as a product release or a launch on the mainnet, and then fall by a large margin after the announcement .
Therefore, some investors expected that the price of XRP would decrease after the announcement of the big announcement of Ripple Labs, but given the importance of the integration of RippleNet by Banco Santander and its OnePay FX mobile application, investors expected the momentum of XRP.
The decline in the dynamics of XRP and the major cryptocurrencies, including Ethereum (ETH), Bitcoin Cash (BCH) and Stellar (XLM), will probably prevent the market from starting a major short-term rally in the next 24-48 hours.
At this stage of the market, it is important that cryptocurrencies demonstrate a gradual increase in volume to initiate a corrective rally in the coming days.
The OTC market is still healthy
According to Bobby Cho, the head of global trading at Cumberland, a division of Chicago's cryptocurrency trading of DRW Holdings LLC, Bitcoin's over-the-counter (OTC) market has been quite active among individuals and institutions of high financial value, which it may have brought Bitcoin to stabilize at a low price.
"One of the biggest criticisms of the crypt by institutional investors was volatility: in the last 4-6 months, the market has been trading in a very narrow band, and it seems to correspond to the traditional financial institutions that are becoming more comfortable in space, "said Cho.
If the demand for BTC continues to increase in the OTC market, it is possible that in the coming weeks, BTC will restart the recovery in terms of momentum and volume.
Shutterstock foreground image.
Follow us on Telegram or subscribe to our newsletter here.
• Join the CCN crypto community for $ 9.99 a month, click here.
• Do you want exclusive analysis and in-depth analysis encrypted by Hacked.com? Click here.
• Open positions on CCN: sought-after full-time and part-time journalists.