The joy of Christmas cannot spread to the cryptocurrency markets this year.
The market capitalization of digital currencies hit new highs last week as Altcoins recovered against falling bitcoin prices. But the markets seem to have changed course. Altcoins have joined the original currency by losing their profits as market prices have fallen. Coinbase stops working because of “high traffic”. As long as there is no recovery, it seems that Santa Claus will not visit the cryptocurrency markets.
Images, they say, are more powerful than words. Here’s a price chart for bitcoin’s price at 14:30 UTC.
The cryptocurrency’s price has collapsed by approximately $5,000 (or, 24.73%) from its price 24 hours ago. On a weekly basis, the fall in bitcoin’s prices amounts to 33.24%.
And, from its high of $19,643.02 last Sunday, bitcoin’s price has declined by 40.3%
Although a correlation has not yet been determined, the Bitcoin price indicates the price movement for other cryptocurrencies. They mainly move in tandem; Sometimes they get out of reach. Prices for the top 10 best-selling cryptocurrencies have been synced to Bitcoin over the past 24 hours and lost an average of 35% of their price 24 hours ago.
Bitcoin Cash, which released a new record this week, fell 38.91% at the time of writing. Litecoin, Dash, and Cardano were the other cryptocurrencies among the top 10 most traded, with significant value. All three had reached record highs last month.
The general market capitalization of the cryptocurrency market was $ 432.7 billion. On Thursday, it reached a record $ 654 billion.
Will Bitcoin Crash Further?
Given the unpredictability of their movements and the lack of a single correlation factor, this is difficult to say. The technical analysis was unable to accurately predict the price movements of the cryptocurrency. In other words, Bitcoin has recovered the lost ground pretty quickly in the past. For example, it has increased by nearly $ 5,000 to release a new maximum last week.
Takashi Hiroki, chief strategist at Monex Securities, compared Bitcoin trading in gambling as the cryptocurrency does not follow logical patterns. Neil Wilson, the senior market analyst at ETX Capital, told Guardian that the price erosion could be a simple case in which traders are sold by the end of the year to realign their portfolios. An interesting article on Coindesk analyzes the role of credit in Bitcoin price movements. According to author Marc Hochstein, Bitcoin is quickly “funded” and credit is becoming an increasingly important part of its system. He cites a newly created CEO who said he could raise the bitcoin price in the short term, but it would eliminate Bitcoin from a real value stock.
But long-term traders have reasons to be optimistic about bitcoin price movements. It has been the subject of several reports of the institutional money flowing into the cryptocurrency markets. Hedge fund money reaches digital currencies
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