XRP, Zcash, Stellar Threaten Yearly Lows
The summer crypto market pump of 2019 took the best part of six months to build up a head of steam. Yet just a few weeks on from the last market peak, and several altcoins have already reverted back to ‘crypto winter’ price points.
Now altcoin investors are faced with an interesting conundrum: whether to snap up altcoins while they flirt with 18-month lows, or to wait out this market drop and aim for even lower prices in a few months time.
The Difference Between Two Bitcoins
The same goes for Bitcoin buyers. The following tweet from game designer Kevin Lambert displays the conflict investors now find themselves mired in. Lambert wrote:
“Remember everyone who said, “Damn I wish I would have bought more BTC when it was under $10k!” This chart means all the people who were wishing for sub 10k are too afraid to buy now. They’ll be saying the exact same thing the next time BTC is over $12k.”
Lambert referenced the Crypto Fear and Greed Index, which currently displays a reading of ‘extreme fear’ in the crypto market. The sentiment he expressed is true insomuch as investors are always wishing they’d hit a better buy in price.
However, there’s a big, big difference between $10k on the way up, and $10k on the way down. The former represents the best buy-in price one can attain. The latter, the worst.
Altcoins Back to Square One
In February, the Zcash (ZEC) coin price sunk to a near 15-month low of $45.91. The summer surge took six months to carry ZEC all the way to a peak of $123.56. In the six weeks since then, ZEC made a swift return to the $40 range, plumbing the depths of $48.50 on Thursday afternoon.
The same can be said for XRP, which fell to $0.256028. That’s the first time the XRP coin price has been perched so low since August 2018. Not only was that before the summer 2019 pump, but it was also before the mega-XRP pump of Q3 2018, when the coin dominated crypto market charts, and threatened Ethereum’s position as the number two crypto in town. At this point, time has essentially stood still for XRP for the past year.
The altcoin market does discriminate, as evidenced by the fact that Ethereum, Bitcoin Cash and Litecoin are still up over 100%, 200%, or 300% for the year. But Stellar (XLM) has now returned to pre-2017 pump prices. The last time the XLM coin price sunk to $0.066479 was in November 2017 – the best part of two years ago.
Back at the turn of the year, these prices were much more attractive because the entire market had found a temporary bottom. Today, Bitcoin is still up 3x from its December low. One assumes that if BTC falls further, it will carry the alts down even lower.
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.