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$6 Billion Wiped Out of Crypto Market in 48 Hours: Where to Next?


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Over the last 48 hours, since November 7, the global crypto market has lost $6 billion of its valuation as it dropped from $220 billion to $214 billion, while Bitcoin remained stable.

On November 6, major cryptocurrencies including Bitcoin Cash (BCH), Ripple (XRP), Ethereum (ETH), Stellar (XLM), and Cardano (ADA) recorded large gains in the range of 5 to 30 percent, as BCH surged by around 40 percent within a two-day span.

Subsequent to demonstrating a significant increase in value, most major cryptocurrencies retraced, which was expected amongst the majority of cryptocurrency traders in the community.

On a Monthly Basis, Crypto Still Performing Well

Fueled by the drop of Bitcoin Cash and many small market cap tokens, the cryptocurrency market recorded a drop of 2.7 percent in its valuation. But, on a monthly basis, the market is up more than $16 billion since mid-October, from $198 billion to $214 billion.

Since October 15, the crypto market added $22 billion to its valuation, rising by more than 11 percent. A minor correction was expected following a major 11 percent increase within a 30-day span.

Despite the 2.7 percent drop in the valuation of the market, the volume of major cryptocurrencies remains relatively high. In early October, the daily trading volume of BTC was hovering at around $3.2 billion.

As of November 9, the daily trading volume of BTC remains above the $4.5 billion mark, up 40 percent within the past three weeks. The noticeable surge in the trading activity of BTC and other major cryptocurrencies like Bitcoin and Ethereum is attributable to the general increase in positivity and optimism towards the mid-term growth trend of the market.

Many traders consider the Bitcoin futures market of Bakkt to act as a major catalyst for the next rally of BTC, as unlike other futures trading platforms, Bakkt physically delivers BTC to future contract holders. Hence, institutional investors could actually impact the price of BTC in a positive manner, as CCN reported on November 8.

While the general sentiment towards BTC and major cryptocurrencies is positive, the recent crackdown on decentralized crypto exchange EtherDelta has led investors to be more cautious in investments in tokens.

Tokens in Trouble

On November 7, CCN reported that tokens could suffer a correction throughout the months to come if the US Securities and Exchange Commission (SEC) decides that most tokens are securities under existing regulations.

“While many tokens have recorded gains in the range of 5 to 20 percent over the last week, regulatory uncertainty around tokens and their regulatory nature could lead to a decline in the value of tokens in the weeks to come, as the SEC releases its new guideline.”

Over the last 24 hours, decentralized cryptocurrency exchange EtherDelta was targeted by the SEC for the distribution of unregistered securities, and the categorization of tokens as securities could lead to a further decline in the price of most tokens.

Already, tokens have started to drop substantially in volume, as seen by the sell-off of Polymath, 0x, and Basic Attention token.

Featured Image from Shutterstock. Charts from TradingView.

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Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

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