In what seems to be the worst year for crypto in quite some time, the trend is continuing today with most currencies and projects down 5-15% or more across the board with only a small handful of exceptions. Tezos for instance is faring well, as is Ethereum Classic. But why does this keep happening, and when will the downward trend finally reverse?
Another $20 Billion Dollars Erased
It feels like just a few days ago when we wrote about $24 billion dollars in value disappearing in a single day. While today’s crash may not be quite as steep, it seems in some ways even more painful. Almost as if a sore point has just been struck with a belt once more before it got a chance to fully heal.
Image via coin360.io
Bitcoin has dropped to $6,371 at press time, well below the previously solid $6,500 mark that is held for several days. Ethereum as well has lost it’s foothold at the $450+ range and is now sitting at $433. Bitcoin Cash has slid deeper into it’s slump and is now stuck at $696. EOS took a particularly hard hit and is now floundering at $7.16 each.
Tezos Sees a Jump
The much beleaguered and scandal-laden project known as Tezos saw an oddly strange upward movement yesterday, as the project has finally escaped from legal hell and has officially begun its beta launch.
Part of that launch includes Tezos tokens finally being available on the market. A number of investors have used this opportunity to get out of their investments by selling, but an equal or larger amount of traders are taking this opportunity to buy. It is the second part of the movement that perhaps is causing Tezos to see a slight upswing. But will it last? No one knows for sure right now.
Tezos (XTZ) is currently trading for $2.19 each, up from $1.37 a few days ago.
Ethereum Classic Holding the Line
Ethereum Classic, which we wrote about just a few days ago here, is still holding most of its gains and standing at $16.20. It seems the Coinbase effect is still in full swing despite general negative attitudes in the market.
While the gains from the last two days have been lost, just the fact that is holding steady within the range of a few dollars is a strong sign that investor confidence in the asset is solid. If the market continues to dip, however, it is possible that Ethereum Classic will be dragged along with it.
Bitcoin Gold Dumps Further
Just yesterday, we wrote about the tragedy that is Bitcoin Gold and how prices have dipped more than 95% from $470 to a sad and broken $30.
In today’s major selloff, BTG has dropped its USD value by 10% to the $27 range. While it has dipped this low before, it is a stark reminder that Bitcoin Gold is not seeing much confidence or support for a price above $30. This again does not mean that the asset is dead, but clearly it’s going to need a lot of help if it’s ever going to recover and stay strong above the $30 mark long-term.
The Big Picture
What’s unfortunate about these market conditions is that even though prices are much higher today in general than they were 18 months ago, the general downward movement is causing a lot of pain for a large number of investors. While some commentators have accused bitcoin futures of being responsible for the movement, others are not so sure.
It’s our best guess that the only thing that’s going to break the current sputtering and fish-like flopping seen today is a sequence of major announcements indicating, for example, a number of major institutional players betting big on crypto.
It could happen at any time, but for now, all we can do is watch and wait with nail-bitten fingers as the market continues to act in a frustrating way.