Oct 12, 2018 at 10:58
Oct 12, 2018 at 10:58 UTC
After a period of relatively calm trading activity, this week was quite volatile for cryptocurrencies. Because of a number of adverse news, the crypto market has taken a steep downturn. Virtually all of the top 100 cryptocurrencies are trading in red and even crypto leaders have shown double-digit (in percentage) value loss.
Global news such as the concern of the International Monetary Fund in regard to the digital currencies’ price and popularity can be the reason behind the downturn. The latest World Economic Outlook reports have also warned that the rapid expansion of the new asset class can create new vulnerabilities in the international financial system.
Other than this news, a group of researchers from Florida International University and Princeton University has also warned that China possesses over 70% of Bitcoin hash power and can destabilize the top cryptocurrency. A U.K. based researcher Windsor Holden has also forecasted that crypto market is about to implode because of the low transaction volume and failure of crypto to rally during the Brexit troubles.
According to the technical strategist at FundStart Global Advisors, Robert Sluymer, investors should wait for the trend to change before investing in Bitcoin or any other cryptocurrency.
Because of the sudden downturn, the market capitalization of crypto industry dropped more than $13 billion. Currently, the market capitalization of the crypto industry is $14.7 billion. In the past 48 hours, the value of almost all top 10 cryptocurrencies has dipped significantly. Let’s have a look at the top cryptocurrencies.
Bitcoin is currently trading at $6,309, thus showcasing a dip of nearly 4 percent in value. After a strong trading week the top crypto coin dropped over $300 in a few hours. Bitcoin was trading at $6,670 on 8th October.
Ethereum was even worse than Bitcoin and dropped around 10 percent. At the time of it was trading at around $202, though its weekly chart is showing a similar strong consistent performance.
The value of Ripple has dropped over 12 percent and it was last trading at $0.41. In September Ripple has shown an outstanding growth and knocked down Ethereum ranking on CoinMarketCap’s listings.
Bitcoin Cash (BCH)
The value of Bitcoin Cash has dropped almost 12%. Currently, BCH is trading at around $449.
Though there are no clear indications of this sudden downturn, it now remains to be seen how the cryptocurrency market will respond to the existing conditions in the coming days.