For some months now, the price of BTC steadied around the mid-$6,000 USD mark. As a result, expectations were high that a market rally was near. Sadly, they were so wrong. The truth is, BTC keeps falling, spurring massive sell-offs of digital assets. To add insult to injury, BTC has plummeted by 12% over the last day (Wednesday) with its price hovering around $5,500 USD.
While it is normal for cryptocurrency prices to rise and fall at various times, incessant falls without appreciable gains makes the investors worried sick.
Key reasons for the falling cryptocurrencies:
Altcoins are copying from Bitcoin
Consequently, the total market cap of Bitcoin now stands at $96B USD. Well, this means that it is the first time the market cap of BTC has dipped below $100B USD since October 2017. A sneak peek into the entire market shows that total market cap sits at $181B USD.
To be clear, BTC is not the only digital currency feeling the impact of this market bear. As a matter of fact, cryptocurrency price charts now show signs of the coins sitting comfortably in the red and some are still falling. In truth, at the moment, investing in the market in the hopes of making a fortune at the drop of a hat is a no-no. To stay on track, let’s quickly look at how the altcoins are faring so far.
Much as Ripple (XRP) has climbed the incline to become the second-biggest cryptocurrency by MCAP, the overall market downtrend didn’t spare it. XRP is down by 9.2%. Apparently, having to answer to some class action lawsuit is not the only challenge Ripple Labs has to grapple with. Yes, they need to get the currency back on track again. No doubt, they have a lot on their plate.
One wouldn’t be wrong to assume that Vitalik Buterin, the founder of Ethereum, would have sleepless nights right now. Why wouldn’t he when Ethereum (ETH) is helplessly falling like a pack of cards? Yes, ETH is down by 8.7%.
Coming to Bitcoin Cash (BCH), it is down by 8.7%. However, in all this, one thing is abundantly clear, volatility has hit the crypto market yet again.
Cause of crash
To many whales out there, the price falls are disheartening, but let’s try to figure out the root cause. According to Brian Kelly, the founder of BKCM, the disagreement over the hard fork of BCH is the cause. But what is causing the buzz? You see, hard fork implementation requires that an overwhelming majority accepts it. However, that is not the case with BCH since the chain to settle for has thrown the entire BCH community into disarray and caused the falling cryptocurrencies.
On the other hand, Bittpress reported that IMF chief Christine Lagarde is calling on governments to explore digital currencies. Indeed, the primary aim of this call is to protect investors. So, if countries assent to this and implement it, the regulators could crack down on competing cryptos that don’t offer such protection.
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