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Crypto Collapse Plunges Market Cap to 16 Month Low

Not since mid-2017 have cryptocurrencies been so depressed. The difference back then though was that the market was bullish and full of energy, today it is the complete opposite.

Over the past 24 hours cryptocurrency market capitalization has nosedived to a new low for the year and the lowest it has been for 16 months. According to data from coinmarketcap.com markets dumped to $103.5 billion around 12 hours ago, their lowest point since the beginning of August last year.

The crash marks an astounding 87.5% decline since the all-time high of $830 billion in early January. As the exodus from digital currencies accelerates, a new low is made every couple of weeks. Another $20 billion has been lost this week alone as markets plunged a further 15%.

Since the same time last month, over half the crypto market has been destroyed with over $100 billion leaving the space. In early November market cap was over $200 billion, today it has collapsed to just over $100 billion.

The mainstream media have been all over this with stories of death spirals and Bitcoin going to zero serving little purpose but to spread more fear, uncertainty and doubt. The blame has been put on the SEC with its constant clampdown on unregulated securities but the cause is likely to be a lot more than this alone. The notion that it will not approve a crypto ETF for some time has also quashed hopes of a recovery.

Chinese miners shorting their newly minted coins have been another nail in the crypto coffin this year. As profitability decreases though, so does mining difficulty which may take some of the control away from the conglomerates and their high powered farms of ASICs.

One thing is for certain, the bears are still in full control of the crypto markets sending them lower every week. Bitcoin has been the leader of downward momentum and its failure to hold support levels on several occasions has sent it to new lows with the rest of the market following. At the time of writing Bitcoin was trading at $3,480, bouncing off a new 2018 low of $3,280 a few hours ago.

The current prediction is that BTC will level out at around $3,000 and stay there for some time before recovering. Though some merchants of doom have even suggested that Bitcoin could go down to $1,500 at which point most of the other altcoins will be practically worthless.

The post Crypto Collapse Plunges Market Cap to 16 Month Low appeared first on Ethereum World News.

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What Caused Crypto Markets to Dump $30 Billion and Hit a New 2018 Low

This year has not been a bright one for cryptocurrencies. The fervor at the beginning of 2018 has dissipated into a shroud of despair towards the end of it. As markets continue dump, new lows are being made leaving us wondering when it will reach the bottom.

Over the past 24 hours cryptocurrency markets have bled $30 billion dollars according to stats from Coinmarketcap.com. From a level of $219 billion this time yesterday markets have crashed to a new low for the year of $189 billion around eight hours ago. A small correction has pulled them back to $192 billion but further losses look imminent.

It is the third lower low in August indicating that the down trend is steepening. A whopping $110 billion has left the crypto space in less than three weeks as markets plunged 37%. Bitcoin has fallen sharply dropping 27% from its July high of $8,350 to its current level at just over $6,000. This has caused the altcoins to shed even more as they get dumped in a fury of FUD. Many of them including Cardano, Iota, Tron, Neo, Binance Coin, VeChain, and 0x are getting smashed over 20% on the day.

There has been some speculation as to what is behind this big dump as the SEC’s delay of the CBOE ETF would not have caused such a collapse but may have been the catalyst for it.

Senior market analyst at eToro, Matti Greenspan, suggested the US dollar is having an influence when he told the WSJ;

“The crypto markets falling may well be a side effect of the dollar strength right now. The buck is simply crushing everything in its path.”

Other analysts have blamed Ethereum for the last two day’s declines as ICO projects offload their ETH holdings to liquidate assets in a bearish market. Ethereum has been crushed overnight with an 18.5% slide to $260, its lowest level since September last year. Since early February over $80 billion has been dumped out of Ethereum’s market capitalization sending it back to levels in mid-2017.

Ethereum is still the primary platform for many ICO and blockchain projects but since raising funds in ETH they have been anxious to cash out as the bearish market goes from bad to worse. It appears that this has all happened at once accelerating the free fall that many tokens are now experiencing.

The long term prospects for Ethereum and Bitcoin are still very strong, but this year they are being put through the wringer.

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A Resilient Tron (TRX) is Still Kicking In a Bearish Market

Sundays are usually tricky for the crypto-market. History has show that whatever direction is set in the markets late on Sunday, might be the tone of the entire coming week. Last Sunday saw the total market capitalization that stood at $390 Billion, start declining into Monday and resulted in us seeing the lowest market levels this month on Thursday when it reached $324 Billion. That figure is now at $327 Billion and down 17% in a week.

Bitcoin (BTC) is considerably weak and trading at $7,345. This value is 13.5% lower than last Sunday’s. When we look at TRX, the token was valued at around $0.074 last Sunday and is currently trading at $0.0724. The token has oscillated between $0.0835 and $0.068 in the past week.

The reason for this resilience by TRX is attributed to the MainNet Launch that is now 3 days, 15 hours and 12 minutes away. With Bitcoin (BTC) showing signs of further decline, it is safe to conclude that there are only 2 options for TRX. The first one being a further increase in value leading up to Thursday. A second is the token exhibiting sideways movement in the coming week.

Also to note, is the beehive of activity with respect to the TRX and as we enter June. Ethereum World News had highlighted the events that will kick off on the 31st of May and end with the Super Representative elections on the 26th of June. This means that a lot will be happening in the next four weeks or so, to warrant corresponding upward market action for TRX.

Justin Sun has also upped the game in terms of having partnered with vSport ahead of the FIFA World Cup that starts on the 14th of next month. There has also been news of Justin, through the Tron Foundation, wanting to buy BitTorrent.Inc. All these events are factors to consider as we walk into June in a few days.

In a nutshell, the entire market is in a bearish trend. TRX has a few events lined up that will surely help the token, and later coin, to stay afloat as the rest of the crypto-market takes a hit from the current trend. Some analysts have even considered TRX to be gearing up for an uptrend in the coming days.

Disclaimer: This article is not meant to give financial advice. The opinion herein should be taken as is. Please carry out your own investment research before investing in any of the numerous cryptocurrencies available. Thank you.

[Photo source, financegab.com]