What a day. Bitcoin has gone down below the $5,000 key resistance level and is currently priced at $4,539 at the current time of writing. But that’s not all since the whole market has followed in its footsteps, even Tether (not so stable now huh?)! Stellar has overtaken Bitcoin Cash, Ethereum is down $134 but the only cryptocurrency that seems to be doing relatively well is XRP with only a 4.47% decrease over the past 24 hours.
Put simply, the markets are in chaos.
This chaos that the markets are currently in has wiped out an estimated $25 billion in value as all the digital assets have plunged in value.
The spiral also caused other digital currencies to drop with Ethereum dropping almost 15 percent.
As reported by Silicon Republic:
“Overall, the value of bitcoin is down 30pc since Thanksgiving last year and down 76.5pc from its all-time high while Ethereum is down 87pc from its all-time high, according to crypto coin news site CCN. Across all cryptocurrencies, value of virtual cash has fallen by $25bn because of the turmoil.”
There is surely plenty of reasons for the drops of the markets but one of them has to be down to the hard fork of Bitcoin Cash which happened last week. The two cryptocurrencies that came as result of the Bitcoin Cash hard fork is Bitcoin Cash ABC and Bitcoin Cash SV which are now competing with each other and making the crypto space chaos for investors.
There are now worries and concerns that this behaviour will spread to other digital currencies which would cause a kind of ‘virtual run’ for other cryptos in the market causing similar hard forks between other currencies and dragging down their value overall too.
If you look to digital assets such as TRON, Binance Coin and Monero you can see that they have recorded an average drop of around 16 percent daily
It’s worth noting that we are not financial advisors and this is not financial advice. Investing in cryptocurrency is very risky, so only invest based on your own research and invest with money you can afford to lose, always remember to trade safe!
What are your thoughts? Will the market recover from this anytime soon? Let us know what you think down below in the comments!