Today traders woke up to a sea of red, with cryptocurrency markets falling by as much as 29%. The total cap of all markets is now $192b.
Of the top 100 currencies Ark was hit the hardest, falling 29% to a total market cap of $104m. Closely following, Wanchain fell 25.8% and Nebulus 26%.
The most widely known and available cryptocurrencies were not exempt either, ZeroX fell 25% while Binance, Neo and Iota lost around 20% of their value over 24 hours.
While Ethereum and Cardano fell 17 and 19 % respectively, Bitcoin was the strongest performer, only dropping by 6%.
Speculators have attributed today’s steep decline to long-term market analysis, with traders believing that cryptocurrencies have fallen into a long-term bear channel that began in January. According to this analysis, prices could fall even lower. As always it seems that the path Bitcoin takes will define the direction of the entire market. If Bitcoin can hold steady, a fast recovery could still be a possibility, but further drops may be on the horizon.
This recent loss of faith in the market following last week’s ETF rejection has been a shock to many, but markets that can fall so fast can equally quickly recover. That may be on the cards, as another ETF proposal on the table for the end of September. If the bid is successful, it could signal an equally large reversal, as investors retake their positions under the belief that institutional money is about to flood the market. While the accuracy of this understanding of the space be questionable, (recent revelations around BAAKTS may already have paved the legal path for big businesses to dive in) it may be a solid prediction nonetheless.
The drop in prices comes as a reminder to everyone just how volatile and high risk this industry is, and that investors should never put in more than they can afford to lose. If you have been affected by the market crash, make sure to seek help from friends, family and professionals and remain positive. In terms of adoption, technological advances towards scalability, and fair regulation, the future of cryptocurrency has never looked brighter.
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