Bitcoin (BTC) Sinks To Eight-Month Low; As Does Cryptocurrency Market
There has been zero respite from the heavily downtrodden cryptocurrency market, even though Saturday saw it shed roughly 10 percent of its value as part of a widespread sell-off led – in absolute terms – by Bitcoin (BTC).
Indeed, after Saturday saw the pioneering cryptocurrency shed over $US10 billion in market cap (i.e., over a 10% drop) en route to test the psychologically-significant $6,000 level, the BTC price ultimately kept falling on Sunday, to now reside in the $5800s.
Buyers Swoop on “Bottomed Out” Prices
In a sign that the bears are well and truly in control of the Bitcoin market, the continued slump in BTC’s value – the lowest it has been since November 12 of last year – came despite the preeminent cryptocurrency’s price having managed to successfully resurface above $6,000 earlier on Sunday; peaking at $6,224 at 7:10 AM (JST).
Red Market Returns as “Rally” Proves a Red Herring
Any hopes of an ending to the strong Bitcoin selling activity that, unlike most other significant price movements, was almost exclusively technical in nature (and not borne out of any major fundamental news), was short-lived, as BTC once more headed downwards as Sunday transpired.
Once it became clear that any would-be price resurgence was highly unlikely, the selling accelerated yet again. Notably, between 13:54 PM and 16:44 PM, the price of Bitcoin decreased by just over 4 percent from $6,096 to $5,860.
Follow the Leader
Such is the standard course of action in this immature cryptocurrency market, basically all crypto coins and tokens (i.e., altcoins) mimicked the weekend’s harsh depreciation seen in BTC. Incredibly, the total market cap has plummeted to a lowly ~$240 billion, its lowest valuation since last November 21.
Just as altcoins tend to rise by proportionately more than Bitcoin in bullish market conditions, the opposite has held true in this multi-month bearish period. The weekend further instilled this, with the prices of many popular top-20 cryptocurrencies (by market cap) falling by roughly 20 percent, as compared to Bitcoin’s ~12 percent slump.
The “worst of the worst” was undoubtedly EOS (EOS). Having recently launched their mainnet and closing their record ICO, the EOS token fell by some 30 percent in value across the weekend, as the broader market conditions only exacerbated the selling activity that had already been prompted by investors fed up with lingering issues surrounding EOS’ governance model.
As for 24-hour price movements, other large-cap cryptocurrencies that have been among the hardest hit include Stellar Lumens (XLM; down 10.3%), Binance Coin (BNB; 10.7%), and Bitcoin Cash (BCH; 8.8%).
All price data used in this article was recorded at the time of writing and was retrieved from CoinMarketCap.
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