After weeks of somewhat negative activity, the cryptocurrency markets took a nosedive over the weekend, and on Monday, Bitcoin went below the $7000 mark to settle at around $6700. Commentators have speculated that the sudden dip in price could have something to do with the South Korean Coinrail exchange being hacked, fuelling panic all across the markets. However, there are signs that this latest crash is the last one before a major uptrend since Bitcoin was up at well over $6850 at press time, while other currencies such as Ethereum Classic and Ontology posted substantialgains in early morning trading on Tuesday.
As often happens with these slides, Bitcoin took the rest of the currencies with it. The worst performer in this respect was EOS, which lost close to 30% of its value and was trading at below $11 at press time on Monday afternoon. EOS’ fundamentals remain very strong, however, and it should only be a matter of time before an upswing takes place. In fact, EOS was up over the $11.30 in early morning trading on Tuesday
Cardano and IOTA also slid considerably across the past days to trade at around $0.17 and $1.35 respectively. These prices may seem to be something of a bargain although there could further fall before an upswing commences. Ethereum also sank heavily from the $600 mark to trade at around $520 but appears to be well supported at that level. Bitcoin Cash was also down to the $930 levels although it is still considerably up over its 2018 low of $600 reached in early April.
Other smaller cryptocurrencies also experienced substantial losses which were not correlated to any market sentiment. Stellar was down to $0.25 while NEO slid to the low $40s – the China-based currency is down by well over 100% from its 2018 high of $190. Ethereum Classic and Dash also slid down, although they appeared to hold their position rather better than other coins.
It seems that the market is waiting for institutional investors to get in and this could create an uptick in the prices of the major cryptocurrencies. Billionaire bulls such as Mike Novogratz and Fundstrat’s Tom Lee are substantially bullish on the medium to long-term future of the cryptocurrency markets with predictions that Bitcoin would be trading at $25,000 by the end of the year.
Jay is pretty interested in the crypto space. He’s written for several publications on the topic and has lots of ideas on how the world can be made a better place with blockchain technology. He’s also a fintech journalist with some years of experience and enjoys writing about new startups, ICO’s as well as any other intriguing news that catches his fancy.