Return to $100 Billion Awaits as Crypto Market Loses $5B in One Hour
The cryptocurrency market lost $5 billion worth of value in fifty-five minutes on Sunday, as Bitcoin once again dipped into the high $3,500 range.
The entire stack of cryptocurrencies appears to be on dangerous footing, and despite miraculous growth recorded by various altcoins in recent weeks, one gets the feeling that a return to a market valuation of $100 billion is just a dip or two away.
That’s the valuation the market struck on December 15th, 2018 – a near eighteen-month low at the time. In a search for omens beyond those provided by technical analysis, the current daily trade volume in the $18 billion range is twice the $9 billion recorded during that December low, meaning the current volatile period could be extended a while longer.
Bitcoin Price Sinks
At 11:29 UTC Sunday, the value of BTC sunk from $3,730 down to $3,590 – a 3.75% drop off, and all within fifty-five minutes.
By 12:24 UTC, the rest of the market had followed suit, and small and mid-cap altcoins such as Wanchain (WAN), Ardor (ARDR) and Aion (AION) all lost over 10%. Major altcoins fared only slightly better, and by the end of the drop the global market had sunk from $124 billion down to $119 billion – a 4% drop overall.
Closer to the top ten, several major alts lost between 7% and 10%, including EOS (EOS), IOTA (MIOTA) and NEO (NEO).
EOS sunk 7.14% from the daily high of $2.52 down to $2.34 during the fifty-five minute plunge. Technical analysis from two days ago suggested EOS was on shaky footing, and its losses on Sunday were twice that of Bitcoin, and even more again than XRP.
The highest concentration of trades came from a little-known exchange called Dobi Exchange, where EOS/BTC trades made up almost half of the platform’s daily turnover.
From MIOTA’s daily high of $0.325250, the coin price fell 7.6% down to $0.300415. That wipes out most of MIOTA’s gains for the week, and returns the coin to the $0.30 range – one which has been in and out of play since late November of last year.
USDT and BTC trades dominated among MIOTA’s pairs, with ETH and KRW only offering single digit percentages of IOTA’s $7 million daily trade volume. IOTA had recorded 17% growth during the previous week, with $0.28 remaining the weekly base.
After falling out of the top ten, and almost the top twenty during 2018’s market plunge, NEO recorded 77% growth leading into January – more than Ethereum or XRP managed during the same time period.
On Sunday however, NEO saw a reduction of 10% as the coin price fell from $8.37 down to $7.53. NEO trade volumes rose 49% over the weekend, topping $161 million thanks to increased action on the DragonX, BitForex and Bit-Z exchanges.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.