It wasn’t a good day yesterday for the cryptocurrency market. First we heard the news of Koinex shutting down, and post that cryptocurrency market came crashing down from almost $380 billion to $320 billion. Bitcoin lost its $13k and $12k levels, going as low as $10,800 at a time… but recovered gradually to retain $11k. Its current market price (CMP) is $11,051, and at the moment it’s down 14.15%.
Other cryptocurrencies have also had a toll on their performance in last 24 hrs. Ethereum, for example, is down more than 12% and currently trading at $293. XRP is also down by 12% and trading at $0.40. Bitcoin Cash, Litecoin and EOS are down 15%, 12% and 13%, respectively, and trading at $405, $114 and 5.78. The full picture of top 10 cryptocurrencies looks something like this right now.
The biggest decline among top 20 cryptocurrencies, as you can see, has come in the value of Bitcoin Cash. Second biggest decline is in Bitcoin, and it’s after a very long time when Bitcoin is in among top declines in top 20 coins. And the impact of this development is so significant that even in top 50 there’s only a single cryptocurrency trading in the positive territory: Dogecoin, which is up by 3% and trading at CMP of $0.0033.
Now let’s talk a little about the causes that might have contributed to this significant decline in the values of BTC. First of all, Bitcoin had jumped too much within 2 days – there was a jump from 11k – 13k within 2 days, so it’s possible that some profit booking may be going on. Secondly, in our country India we lost a major cryptocurrency exchange operating from 2 years. The shutdown of Koinex is no small development for global crypto market as well, mainly because Indians also contribute a sizable proportion to the global trading volume.
That is what I see as the reasons behind this sudden drop in the value of Bitcoin. But nothing to worry about it, as volatility is still alive. The speed with which we’re losing may also be the speed at which we regain the lost values. Just have patience and don’t take any trading decisions in a hurry.