Just a few hours back, the crypto market has been enjoying the greens with Bitcoin looking to break the December high with the total market cap rising above $140 billion. Now, in a matter of hours, the crypto market has gone deep red.
The leading cryptocurrency is down about 3 percent in the past 24-hours at $3,834, as per the data provided by Coinmarketcap. Meanwhile, the trading volume keeps on surging. It has not only broke the $9.9 billion high from February 19th which was last registered in May 2018, rather surpassed it by a good margin as it registers $10.79 billion.
Bitcoin price chart, Source: Coinmarketcap
As usually happens in the crypto market, a drop in Bitcoin means, even a deeper hit to the altcoins. Among the top altcoins, Litecoin is the biggest loser with more than 7 percent losses followed by Stellar that is down by over 6 percent. Other top cryptocurrencies like Ethereum, XRP, Bitcoin Cash and Tron are down about 5 percent.
This has the total market cap to drop down to $130 billion from $143 billion from a few hours back, losing about $13 billion in the process.
Total market cap, Source: Coinmarketcap
While the market has been seeing the greens, Crypto trader, Benjamin Blunts had said that this is just like the end of 2017 when Bitcoin started surging only for the altcoins to trying to catch up. Once altcoins register the gains, a market-wide dump follows. This is all rinse and repeat and nothing else.
Recently, in an interview, crypto trader DonAlt had also shared the reason behind the spike,
“I’d argue the main reason why this happened was due to the entire crypto sphere getting overly excited into technical (Weekly & daily) resistance combined with the fact that there’ll probably be a lot of ‘sell the news’ coming the closer we get to the ETH fork.”
Many crypto analysts have been already calling out for a dump after Bitcoin goes to $4,100 and $4,200 level. It has been expected that Bitcoin bottom would come in the first quarter of 2019 that would be around $1,800 or even lower at around $1,650. Given the fact that trading volume is rising and the price is declining, more losses might be coming.