The value of Bitcoin fell another $200 on Tuesday as the price moved below $6000 and prompted fears of another leg down. However, for now, supports continue to hold in the major cryptocurrency.
Unfortunately, the same cannot be said for many of the major alt-coins which continued to shed huge amounts of money in what has been a devastating rout.
Ethereum and Bitcoin Cash have both been posting double-digit losses, while former top 10 (by market cap) coins like Verge (XVG) and Tron (TRX) are worth little more than $0.01 after trading nearly 30 times higher than that at their peak.
While the Alt-coin competitors are fading, it is perhaps reaffirming the markets view that only a few coins will survive, and if today’s price action continues we might be left with just one.
In a recent article addressing the state of Cryptocurrency markets, forex strategists at Iron FX note that the negativity and subsequent resilience of the industry is worth noting as the positive developments appear to be being pushed to the sidelines,
“At this point, we would like to make a reference to what is currently happening in the market with millions of participants following the news. Investors and traders are giving too much emphasis on negative news and not so much on the positive developments”
Crypto loses 1/3 of its value
Iron FX’s final paragraph is overtly bullish, and while I do not think some of the comments are worth repeating here as they look like some of the more outlandish rhetoric seen at the height of Bitcoin’s boom, it cannot be argued that a certain amount of perspective is needed, as prices are still considerably higher than anyone might have expected when the project began in 2009,
“The fact remains, in 2009 when this innovative instrument was created no one would even think of it as going as far as it has, while people did purchase it for fun. Currently, after almost 10 years the digital asset finds itself under huge doubt again but still holds up to harsh circumstances.”
Hopefully, Bitcoin can steady but if it does not, there seems little hope for the Alt-coins who appear to have got even more ahead of themselves than BTC. A lack of liquidity has clearly been an issue, and with no buying appetite to match the selling we see the huge slips in price.