- Earlier this week cryptocurrencies identified as “alt-coins” were faring much worse so was bitcoin stressed out.
- According to CoinMarketCap.com, XRP and Ethereum both let fall by as great as 12 % and the whole cryptocurrency market lost a massive amount of $19 billion in 24 hours.
- Matthew Newton, global investment platform eToro analyst said “The crypto market seems to have hit panic mode”.
It has been a tough week for bitcoin but opposite for the low recognized cryptocurrencies leading the selling-spree Tuesday.
The second largest cryptocurrency right after bitcoin; Ether, was the biggest loser in the midst of the top five by market capitalization that dropped more than 12 percent, following the data from industry site CoinMarketCap.com. Ether is now down by 65% this year and was trading near $260 Tuesday after it started the year above $760.
“The crypto market seems to have hit panic mode, with prices falling significantly across the board,” said Matthew Newton, analyst at global investment platform eToro. “As we can see in the case of Ether, investors seem to be increasing liquidations of their ICO holdings, with significant drops in price and increased volumes.”
According to historical data from CoinMarketCap.com the world’s third largest digital currency XRP, also fell by 10% to about 26 cents. The digital currency is one of the biggest stragglers this year, falling about 90% after beginning the year above $2.30.
The Alrcoin Market Had A Breakdown – Not Just Ether And XRP
The whole market worth of cryptocurrencies has fallen by 69% this year, and in the past 24 hours fell by $19 billion. Bitcoin is still made up of more than half of the cryptocurrency market, and has also thrashed to recover to anywhere near its $20,000 in December. Prices have therefore fallen more than 56% this year to about $6,000 on Tuesday.
“When the market is down, the larger players in crypto have thinner pockets for alternative coins,” DiPasquale said. “The market is still majority retail investors who sell on lows.”
DiPasquale has also predicted that bitcoin will fall once again below $5,000 before setting up a recovery in the final quarter of the year.
There was unity between bitcoin and other cryptocurrencies in the previous month when updates on institutional interest from asset super vision giant BlackRock, along with a partnership between New York Stock Exchange owners Intercontinental Exchange, Starbucks and Microsoft on a digital asset platform.
Stakeholders were likewise buoyant that the first-ever cryptocurrency ETF would be accepted in this month of August, that aided increase bitcoin above $8,000. Unfortunately the SEC publicized last week that it would suspend that decision. The SEC in July rejected a second attempt by Cameron and Tyler Winklevoss, founders of crypto exchange Gemini, a list their ETF.
XRP SECURITY WAR
Approximately 60% of XRP on the market is owned by Ripple, and is officially the name of a San Francisco-based company that is involved in developing a network for a more rapidly global financial payments. XRP is the digital token that financial institutions on the network can use to transact quickly.
In the first place Ether was initially launched as a fundraising power to improve the platform blockchain Ethereum. Applications are being built using the Ethereum blockchain, the tech was first used and made prominent by bitcoin. Ether prices got the uplifting in June after a key Securities and Exchange Commission official stated it clear that in the sights of the agency, it’s not a security.
The U.S. agency has not exactly noted on the position of other cryptocurrencies, however top executives at Ripple maintain that XRP is “absolutely not a security.”
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