CV Market Watch™: Bitcoin at $6,500, Markets "Travel Back in Time"
The new market correction took down the gains of the past two months, reshuffling the strengths in the crypto market.
In December, no one could make a mistake in the crypto market. But the downturns in January showed the really volatile nature of the assets. As for Bitcoin, while it has reached far from its humble origins nine years ago, the price still wiped out more than 65%, a painful backtracking for those who had invested at peak prices.
Now you see how volatile this market is. I wasn't predicting that LTC will get to $20. I was saying that I've seen MANY 90% drops from ATH in BTC and LTC. Those that can withstand such a drop without flinching are the ones with lambos eventually. The others pay for these lambos. https://t.co/ozcR11N68o— Charlie Lee [LTC] (@SatoshiLite) 6 лютого 2018 р.
The downward momentum seems strong for all markets, and the drop does not stop, despite the occasional brief upturn on triggering orders. Currently, BTC has fallen to $6,272.13, down more than 43% in the past seven days. The loss in the past day is more than 23%.
The past month has seen Bitcoin slide gradually, as previous landmark levels were lost and selling continued.
Altcoins are quickly unraveling as well, as some assets have quickly returned to their low, depressed levels seen after the September ban of ICOs in China. Now, more talk of China blocking international exchanges is adding to the downward pressures, as the crypto world starts to resemble the year 2014 even more.
For some hot assets hoping on a bright future, the future may be delayed for a while - Ripple (XRP) has slid from nearly $4 to around $66, with no bottom in sight.
For now, the USDT fixed-price token still manages to hover near its fixed price. But it has also seen anomalous movements, spiking to $1.04, and later falling to $.97, which distorts BTC prices. As a result, BTC trades at a slight premium against USDT on exchanges that use this asset.
USDT trading has also expanded from its usual levels of 8-10% of the market, and is now 16% of all trades.
As Bitcoin fell, experts predicted a drop below $8,000 would make even some hardliner investors give up on the asset for now, and wait out an eventual protracted bear market, especially if they bought in during the hype months of the summer of 2017.
The current bear market has affected assets differently: while some coins slide less as long-term owners hand onto their wallets, other hot newcomers are suffering even more.
Nano (XRB), the recently renamed RAI Blocks, has slid to $7, down more than 70% in a week. The most painful losses of above 60% come from small-scale altcoins which ran hot in the past weeks, and are now wiping out most of the gains, returning to pre-pump levels.
This would be a convenient time for all these lending platforms to exit scam and blame the bitcoin bear market and the obvious fud for their failing.— Madoff wasn't on the blockchain (@bccponzi) 5 лютого 2018 р.
To add to the negative mood, crypto scams are surfacing each day, in new creative forms.