Cryptocurrency

Mayhem is here. $26 Billion lost from market in 24 hours.

cryptochats-mayhem

November 24th & 25 2018 has proved to be a chaotic 48 hours in crypto history. Market cap has plummeted, stability has been lost, and the future is as unpredictable as ever. While it may have appeared as a normal Wednesday morning when I first awoke in the wee hours, the horror of the following day soon made itself apparent.

Yesterday was one of the biggest self off dates in crypto history with the market losing a whopping $26 billion.

The biggest devastator being that Bitcoin (BTC) suffered an 11% decrease in price over a 12 hour period. What’s so painstaking about this significant drop (besides the implied pain) is that BTC had demonstrated great stability in value from August through October, only to lose its stability now. Not only does the drop in BTC affect itself, but it had devastating wave effect on other major cryptocurrencies and smaller digital assets.

Bitcoin Cash (BCH) was recorded as having 19% drop over a 24 hour period, and a 50% drop over the past week. It’s easy to say that BCH has seen the the worst decline in value over the past week. Will BCH be able to recover?

What the Future looks like

The major sell off is not over yet as many major cryptocurrencies are still plummeting and Bitcoin rests at a low $5600. Despite the value atrocities that are taking place, Bitcoin’s volume doubled from $4 billion to $8 billion during the past 24 hours.

During Bitcoins stable period of August to early November, Bitcoin rarely saw its volume rise above $4 billion and typically stayed in the $3.1 to $3.6 billion range. The reasoning behind the low volume over the past couple months has been due to the lack of volatility in the market with little trading taking place.

The best way to predict the future is by looking at the past. The first two quarters of 2018 saw smaller cryptocurrencies record up to 80% losses against BTC which also declined by 70%. Now with the 15% to 20% losses recorded this month, it totals these smaller digital assets yearly losses to 90% to 95%.

Bitcoin has seen the majority of its activity taking place at around a$6,000 level, which is what indicated that Bitcoin’s value should recover up to that point before the end of the year. It the price is immediately corrected, it would significantly relieve sell pressure and help reestablish momentum in the market.

Even if Bitcoin’s value rises up to $6,000 once again, the future of the market is still grim. First and second quarters are usually victim to tumbling prices and low volatility . meaning that Bitcoin and smaller coins may only see further damage in their future.

Lower prices and failing markets are almost a given future for 2019 if we don’t see positive effects from Bakkt entering the Bitcoin scene. Expectations are high for what Bakkt will do to the market, read more about Bakkt and what the future may hold HERE.

 

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