With the entire market going down and BTC riding at $8,043, ETH price is experiencing a much terrible fall by plunging down to $456. The government uncertainty towards ICOs, short-term investors looking to stockpile on fiat are causing the fall down at such a rapid pace.
Ethereum dropping by $460, the price is crashing way harder
Over the past one month, Ethereum has experienced a heavy downfall in its prices from $870 on February 28 2018 to $456 on March 28, 2018. No doubt the entire cryptocurrency market is going through the red sentiment and the similar trend could be seen in almost all the elements of the market.
Usually, when the bitcoin prices take a downfall, ETH among other cryptocurrencies takes the similar route. However, in the past when BTC prices fell down, ETH didn’t suffer this terrible of a fate.
For instance, the last time BTC fall down to the $8,024 on February 8, 2018, the ETH prices went down at $825 on the same day.
This time, bitcoin is riding at $8,043 and ethereum dropping by $462 which is 50 percent down than the last time.
One thing is absolutely clear here that the ETH market is losing its value way fast and at more rapid pace than BTC.
Causes and concerns: What is going on here?
The market is certainly bleeding right now, especially ethereum. So, what’s going on around here? For the starters, the uncertainty surrounding the cryptocurrencies is what causes it to an extent.
The cryptocurrency market also witnesses a portion of investors that are in just to make some good fiat. These weak hands invest their fiat to buy bitcoin and then convert their bitcoins into fiat, just to stockpile the fiat money. These short-term fiat holders interest into the crypto market registered first during the bull run last year in mid-spring when the market experienced a lot of green.
Bitcoin has been the most popular of all cryptocurrencies well over a few years back. It still is but after the inception of ethereum came the emergence of new phenomena i.e. ICOs. Initial Coin Offerings is a new crowdfunding method that involves the issue of tokens.
Since ICOs came into the picture, over 1000 new cryptocurrencies have been added to the market. And ethereum is where it all gained the momentum as this platform provides projects with the flexibility and extensibility to launch their own coins. In June 2017, in a short time, the market cap of ethereum reached about half of Bitcoin which is a big accomplishment for a relatively new blockchain.
Government regulators around the world are apprehensive about the whole ICO factor as they lack the right classification to put them into. In the US, several subpoenas were even sent to various organizations as a result of the uncertainties.
Now as the ICO investors take a step back, Ethereum being the most popular and used blockchain platform for ICOs, gets affected as well. Hence, all the money that was coming from the ICO investors, is at a halt.
Ethereum is certainly at a major downfall right now but over the time as the regulations get laid down that facilitates crypto development and the market balances itself by eliminating the fiat stockpilers, the prices will get corrected.
What are your views on the Ethereum dropping down? Share your thoughts with us!
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.