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Most of the World's Biggest Cryptocurrencies Are Down Today

The top 20 cryptocurrencies by market capitalization are all down today in excess of 10 percent, market data reveals.

According to CoinMarketCap.com, those cryptocurrencies have fallen by at least 13% – and in excess of 25% in the case of XRP – since the start of the day. At one point, within the 24-hour period, the overall market capitalization for all tokens had lost nearly $200 billion, falling from $710 billion to $536 billion at its lowest.

As of press time, that figure had bounced back somewhat, hovering around $573 billion.

The drop illustrates the turbulence in cryptocurrency markets today, with bitcoin, the world’s largest cryptocurrency by market cap, having fallen by 14 percent in 24 hours, bottoming out at $11,182 before recovering slightly.

Indeed, only several of the 100 cryptocurrencies listed on CoinMarketCap’s main page are reporting price gains, with assets like siacoin and Bitcoin Gold reporting losses in excess of 30% over the past 24 hours.

On the brighter side, today’s market correction is not as severe as the one that occurred late in December 2017, when the overall market value fell more than $200 billion. At the time, bitcoin had fallen to $10,800.

Further, today’s slump still leaves the market well up year on year. On Jan. 16, 2017 the combined value of all crypto tokens was under $16 billion. Today’s low is at roughly similar levels to those seen a month ago, when the market cap stood at around $554 billion, according to CoinMarketCap.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Ripple.

Down graph image via Shutterstock

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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Bitcoin's Recent Drop “Normal Correction”: Adam Sharp

Adam Sharp, the co-founder of Early Investing, is unperturbed by the recent fall of Bitcoin by over 20 percent. Rather, he is calling it a normal, and expected, correction.

There have been a number of catalysts that are being pinned to the drop that saw Bitcoin tumble from a recent high of $5,000, bottoming out at just above $3,000. However, Sharp is of the opinion that it has all been one big correction.

Still a bullish market

The recent drop of Bitcoin has been reported far and wide, especially as it coincided with the news that China would be first banning ICOs, and then putting a halt on its Bitcoin exchanges. There was also the vitriol spouted from JP Morgan’s CEO Jamie Dimon.

Sharp puts some perspective on the 20 percent drop, maintaining that Bitcoin is still in a very strong Bull market and that this movement, as a correction, is not even that big.

“First and foremost, I think this was just a normal correction,” Sharp said plainly. There are catalysts that people are blaming, but really we’d just gone up from $1,000 at the beginning of this year to as high as $5,000 recently.”

“So it’s just natural and normal for a market to have a correction after a run like that. Historically, Bitcoin corrects anywhere from 30 percent to 50 percent. But the long-term trend is still strongly bullish. We’re up from $0.0033 in 2009 in the very early days to close to $4,000 today.”

Get used to volatility

Sharp goes on to echo lessons on cryptocurrency that are well-known, but not very well heeded. Volatility is part of the game, and it does not matter if it is Bitcoin, or any of the multiple altcoins out there – the market moves like a rollercoaster.

“It’s a little bit nauseating if you’re a holder to sit through days and weeks like this. But I’ve been in Bitcoin and other cryptocurrencies since 2013,” Sharp added. “After a while you just get used to it, kind of. You realize that this is just extremely volatile – it’s something you don’t want to check every day.”

“It’s a roller coaster – an emotional roller coaster as well. If you just try to realize: ‘This is a speculative investment; I’m not going to look at it every day.’ That’s kind of the mantra that I try to repeat to myself during corrections – which are, like I said, natural and necessary.”

What’s the deal with Dimon and China?

Sharp delves deeper into what people are calling the catalysts for the recent plummet in price; China’s deepening regulation and JP Morgan’s Jamie Dimon’s attack on Bitcoin.

“China is eyeing more regulation on the cryptocurrency space. Honestly, I don’t think it’s that big of a deal, but I think the market was kind of looking for an excuse to sell off. And the ‘shaky hands’ – the holders who aren’t totally sold on this thing yet – they had a gut reaction; the market sold off.”

As for Dimon:

“The whole idea of cryptocurrencies is that they can disrupt the current monetary system and the current financial order. So obviously banks like JPMorgan have a lot to lose in this scenario. Dimon is not only the CEO of JPMorgan, but also a Class A director on the board at the New York Federal Reserve. This is the epitome of the current financial status quo – the establishment kind of trying to push back against these new upstarts.”