It would seem the trend of September 2018, is to have numerous unexpected, sharp rises and falls— the actions of the last few days are following this pattern. On September 21, bitcoin rose impressively from $6,514 to $6,766, a 3.8% rise. However, since then it has moved downward. On September 25 it fell from $6,631 to $6,385. Bitcoin’s decline has triggered most altcoins to fall too. Of course, this should not come as a surprise to anybody, considering how most investors are already accustomed to the idea that the rest of the markets follow whatever trends BTC follows. There was a time in the past where traders were of the opinion that this would soon change, but in a bear market it is notoriously hard to overtake the top coins as there simply isn’t enough investment or volume going around. As of September 26, BTC’s dominance is 52%, which is huge. A theory shared among traders is that so long as BTC has dominance, most altcoins will be forced to follow its movements.
Bitcoin’s decline has very little effect on XRP
Once again, XRP has proven itself to be resilient to the current nature of the bear market. People’s anticipation for the xRapid project has allowed XRP to take part in a bull run, shielding it from the type of downturn that other coins are experiencing. However, it did dip on September 25, although it was only light compared to others. That does show that XRP is not invincible— if the market were to crash suddenly XRP would likely crash too.
On September 26, XRP pulled itself up and managed to reclaim the position it had back on September 24. Litecoin was not so lucky. Bitcoin’s decline led LTC to have two vicious drops: one on September 24 which took it from $61 to $57 (a 6.55% drop) and a second on one on September 25 from $58 to $54 (a 6.89% drop).
Market cap holds up well
The crypto market cap has managed to hold up reasonably well, considering how poor many coins are performing. It is currently at $213 billion. This is lower than fans, traders, and long-term investors would like, but so long as it is above $200 billion, it is not a cause for concern. Whenever the market cap drops to around $190 billion, it causes an industry-wide panic, which puts price charts in flux. Bitcoin’s decline in the last few days was significant, but it wasn’t the worst that has been seen this year, so luckily it did not cause any further disillusionment or concern in the minds of seasoned traders.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.