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Price Watch: Bitcoin, Ethereum and Litecoin Face Major Drawback

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The overall cryptocurrency market has struggled to maintain an uptrend since its revival from a multi-month bear market. Following a recent bounce back, Ethereum, Bitcoin and Litecoin have drawn back to prices below key support levels.

Bitcoin, currently ranked #1 by market cap, is down 2.97% over the past 24 hours. BTC has a market cap of $116.07B with a 24 hour volume of $4.68B.

Chart by CryptoCompare

Bitcoin is down 2.97% over the past 24 hours.

Bitcoin experienced a positive price increase in the recent weeks following news of institutional solutions entering the sector. However, the market has since corrected – dragging prices below short-term support levels at $7000.

Twitter user @NeerajKA pointed out the sudden market drop in a tweet posted earlier today, Aug. 7.

Goldman Sachs Explores Custody Offering for Crypto Funds

Earlier this year, Goldman Sachs confirmed plans to launch a Bitcoin futures trading desk to meet rising client demand. On Aug. 6, the leading investment bank announced that it is considering offering custodial services for cryptocurrency funds.

If enacted, Goldman Sachs would become the first major investment bank to back cryptocurrency funds–potentially drawing an influx of institutional capital to the sector.

Bitcoin ETF Pending SEC Approval

On June 26, the SEC received an application from CBOE Futures Exchange to launch the world’s first Bitcoin ETF.

If approved, accredited investors will be able to trade a Bitcoin ETF in the form of baskets of 5 SolidX shares (~100 bitcoin) on the CBOE exchange. Previously scheduled for a decision next week, the application deadline was recently delayed until later this September.

Ethereum, currently ranked #2 by market cap, is down 6.59% over the past 24 hours. ETH has a market cap of $38.44B with a 24 hour volume of $1.83B.

Chart by CryptoCompare

Ethereum is down 6.59% over the past 24 hours.

Ethereum endured a similar price drop below key support at $400, marking a major drawback to multi-month lows. The second largest cryptocurrency has faced an increase in selling pressure this week, declining more than 14 percent from its late-July highs.

Ethereum Founder, Vitalik Buterin: ‘We’re at the Tail End of a Crypto Bubble’

Since its peak in December 2017, the recent cryptocurrency bear market has taken retail investor and public attention away from the burgeoning blockchain industry.

On July 31, Vitalik Buterin replied to a tweet by Post Oak Labs Founder Tim Swanson, displaying the falling web traffic on Coinbase digital asset exchange’s main site.

The chart shows Coinbase’s total monthly visits at a peak of ~126 million in January 2018 and dropping to nearly 29 million in June 2018, according to data from SimilarWeb.

The decrease in Coinbase’s web traffic seems to correspond closely with the price trends of leading cryptocurrencies during the same period. Buterin’s response, stating that markets have reached the “tail end of a crypto bubble,” suggests that he may believe a market trend reversal is imminent.

Ethereum Client Parity Receives Major Upgrade

On July 18, Parity Technologies released a blog post outlining the launch of their new Parity Ethereum Client v2.0. The client upgrade comes with a complete removal of the graphical user interface (GUI), known as the “Parity Wallet.”

In the blog post, Parity explained that the new upgrade also removes “all installers and operating-system specific packages” to better serve commercial enterprises, such as mining pools and exchanges.

Currently, Parity supports over a dozen public networks with an in-built Ethereum wallet and decentralized application (dApp) environment.

Litecoin, currently ranked #7 by market cap, is down 7.7% over the past 24 hours. LTC has a market cap of $3.94B with a 24 hour volume of $299.39M.

Chart by CryptoCompare

Litecoin is down 7.7% over the past 24 hours.

Litecoin fell below nine-month lows at $70 on Aug 7., following Bitcoin’s plummet under the $7000 key support level. However, the seventh largest cryptocurrency is making strides in adoption through its impending listing on Gemini exchange, according to Forbes.

The World’s First Crypto Smartphone Will Support LTC

Litecoin founder Charlie Lee recently announced native Litecoin and Lightning Network support for the upcoming HTC Exodus smartphone — which is currently touted by HTC as the “world’s first native blockchain phone.”

While adoption is on the rise, Litecoin seemingly follows suit with the price action of Bitcoin, which has recently faced a major market correction. The price of Litecoin continues to wane in light of positive developments.

Conclusion

The global cryptocurrency market cap stands at $240.86B with a 24 hour volume of $14.37B. The Coinbase Index is currently sitting at 2845.65. Bitcoin dominance is currently at 48.19%.

The recent market drop indicates that the overall cryptocurrency sector is still transitioning out of the ICO fervor that drove price rallies into late last year and gradually moving into legitimization. As institutional solutions and regulations continue to make headway, it’s evident that institutional capital will likely soon follow. Traders are reminded to be cautious during market drops and invest only what they can afford to lose.

Cover Photo by Alex Wigan on Unsplash

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Jonathan Kim Author

Jonathan Kim

Jonathan Kim is a University of Washington student of Finance and cryptocurrency investor with a deep interest in the emerging industry of blockchain applications and cryptocurrency trading. His past experiences involve publishing original daily content for blockchain startups and trading cryptocurrencies using technical analysis principles.

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