Over past 24 every leading cryptocurrency is down over 10% in exception of XRP which is seeing a much milder shade of red and has even turned green (while reporting). Crypto markets have been under severe pressure over the past 24 hours as bears seem to be in complete control scaring away the bulls.
Crypto markets Wipeout over 13% of market cap in past 24 hours
Over past 24 hours, the crypto street is witnessing a bloodbath as nearly all leading crypto coins and tokens have seen their prices spiraling downward. The only exception here has been that of XRP which is still holding its ground as it dwindles between the greens and the reds.
Although the real reason for the downpour is still unknown a lot of speculative reasons has filled the street while everyone is searching for a bottom. The reason for XRP to standout is also unclear as there has been no major news around the coin for quite some time. Analyst across the board are citing various fundamental and technical reasons that have led to this steep fall in markets. The crypto market has wiped of over 13.8% of the total market cap, while the volume over past 24% has risen by over 51% according to data published by Coin360.
Even though there has been a lot of research which shows equity markets and crypto markets are not linked, the current consensus on the street is that crypto markets are seeing a spillover effect of the meltdown that the Wall Street saw this Monday.
Another reason that is associated to this fall is the BCH fork and the messy events around it. The fear of hash war between BCH ABC and BCH SV and threats of Craig Wright to sell BTC to fund his side seem to be also playing on the minds of people who, in fear, are dumping their investments and closing their positions.
Another reason that is being commonly discussed on street is the bad news from chip-makers Nvidia and Advanced Micro Devices (AMD), which recently reported steep sales declines for cryptocurrency equipment. This sales decline seems to injected fresh fears into the markets as many now believe the interest in cryptocurrencies is slowly fading and not be revived in short term.
Technically too, Bitcoin has significantly breached the triangle formation in which it traded most of the year, creating a negative signal on the charts. The bottom doesn’t seem to be visible now as bitcoin is breaking one support level after another.
What do you think is the main reason for this downpour? Do let us know your views on the same
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.