Home / Crypto Currency / Crypto Market Makes Minor Retreat Post-Rally, Ether and Bitcoin Cash Down 5%

Crypto Market Makes Minor Retreat Post-Rally, Ether and Bitcoin Cash Down 5%


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After adding more than $20 billion within a 30 minute period, the crypto market has declined in valuation, led by the 5 percent drop of ether and Bitcoin Cash.

Over the past 24 hours, the price of Bitcoin Cash, ether, Ripple, and EOS dropped by 4 to 6 percent, while bitcoin remained stable in the $7,300 region. Despite its Relative Strength Index (RSI) demonstrating overbought conditions, the price of bitcoin has not fallen by more than 1 percent since its mini bull run on July 18.

Interest From Large Investors

Earlier this week, Barry Silbert-managed Digital Currency Group’s Grayscale, a fund that oversees $2 billion in assets, has revealed that in the first half of 2018, it raised over $250 million from accredited investors, the most amount of money it ever raised in its crypto fund in a six-month period.

According to Business Insider, the report of Grayscale emphasized that institutions are more interested in the crypto market than in 2017, possibly due to the large drop in the price of major digital assets.

Throughout 2017, especially in the latter half of the year, investors emphasized the overly high value of cryptocurrencies, especially bitcoin and ether that achieved $20,000 and $1,500 respectively at their all-time highs.

Now that the market has fallen by more than 70 percent over the past seven months, the crypto market has started to see an influx of investors from the public market, as portrayed by the recent spike in the volume of bitcoin.

The daily trading volume of bitcoin and ether have risen to $5.6 billion and $2.25 billion respectively, up from $3.5 billion and $1.3 billion last week.

The short-term rally of major digital assets on July 18 was met with a minor drop on July 19, as most tokens alongside ether, Ripple, Bitcoin Cash, EOS, litecoin, IOTA, TRON, and NEO fell by relatively large margins.

Bitcoin Cash in specific dropped from $890 to $815, by nearly 10 percent since achieving a weekly high on July 18.

More to that, as Anthony Pompliano, a partner at Morgan Creek Digital Assets, said, the filing of a bitcoin ETF by Cboe, the launch of a crypto exchange by Japan’s second biggest bank SBI, Goldman Sachs clearing bitcoin futures for clients, and Andreessen Horowitz raising $300 million will contribute to the next rally of the cryptocurrency market, which may occur in the upcoming days if the volume of the market can be sustained.

Tokens Underperform

While bitcoin prevented a downward movement to the $6,200 region, tokens like Aion, Loom, Power, and Waltonchain recorded losses in the 8 to 10 percent range, after recording large gains on July 19. The volume on tokens remain low on major crypto exchanges like Binance, signifying that investors are not ready to take high-risk and high-return trades in the crypto market just yet.

Featured image from Shutterstock.

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Bitcoin Price Watch: Currency Briefly Falls Below the $6,000 Mark Before Recovering

At press time, the father of cryptocurrency is trading for just over $6,000. This is about $200 less than where it stood during yesterday’s afternoon hours. The coin is continuing to fall deeper and deeper into red territory, though this price is an improvement over where it stood during the early morning, when it fell below $6,000. The currency is now just a few steps above its lowest point of the year, which it hit on June 18 with a price of just over $5,770. The cryptocurrency market cap has shed approximately $21 billion off its back in the last 24 hours, and it appears the crypto space is being targeted by massive sell-offs. In other words, bitcoin is not alone in its present state. The currency is struggling to maintain its position on the financial ladder, yet it’s still doing relatively well in comparison with entities like Ethereum, which has fallen below the $300 mark – the lowest it’s been all year. Also, Ripple – the third-largest cryptocurrency by market cap – has also fallen by roughly 14 percent. Charles Hayter, CEO of CryptoCompare, is blaming the SEC’s decision to postpone any action towards the bitcoin ETF submitted by VanEck SolidX. “This has snowballed negative investor sentiment,” he explains. Some, however, are refusing to give in to all the hype and say that bitcoin still has the power to unite cryptocurrencies across the board. One Reddit user for example, recently posted his thoughts regarding the recent sell-off. “Am I selling now?” he asks defiantly. “No way. Why not? Because bitcoin is not broken. Nothing bad happened to bitcoin. It still works. Will there be bumps along the way? What do you think we’re experiencing now? Some of [you]get to decide: are you going to be a coward or not?” Hayter further commented that the bitcoin arena is only going through ups and downs because it is still a developing market; that it holds a strong position in the financial infrastructure, but needs more time to mature: “Bitcoin and its ilk are opening up a new arena of finance. The hope and speculation that gripped the market last year has been eroded in the last few months. That said, under the hood, a lot of work has been moving ahead to form the routes to incumbent institutions and to provide them with the tools, mechanisms and assurance they need for entering the cryptocurrency space. It’s only a matter of time before the crypto sphere becomes part of the mainstream, but it needs to do a lot of growing up in the process.” Bitcoin Charts by TradingView

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