Dubbed the currency of the future, cryptocurrency has been gaining popularity over the last few years. With many today associating with major coins such as Bitcoin, Dash, Ripple, and Ethereum, the digital currency market has seen tremendous changes. This change has contributed to the rise of many web-based and land-based organizations.
Without ignoring the benefits that cryptocurrency has brought to the digital world, different coins have taken a rocky path lately. After several months of not very inspiring downward trading for investors, the crypto market has finally solidified the fact that sellers are in control. Major coins are in a constant dip and buyers are the only ones smiling.
Current Market Situation
Market action during June has seen a significant crash in trade volume, with the majority of the most-traded cryptocurrencies experiencing a drop in the volume of between 17% and 57% when compared with May.
Bitcoin has maintained its significant lead as the most traded cryptocurrency, with BTC pairings producing roughly $125.6 billion worth of trade over the course of the last 30 days. Compared with May’s 30-day volume of approximately $185 billion, the BTC markets have seen a 32% loss in trade volume.
As per the last 24 hours. the populous digital coin is still witnessing a major drop in its value, trading at $6502.45. Its value has fallen by 0.6 percent since this time yesterday and is up by about 10 percent week-on-week. Bitcoin’s value is down by around 14 percent from one month ago.
Aside from bitcoin, major exchanges like coinrate and Bitfinex have seen other currencies dropping tremendously in recent times. Ethereum, the second most adopted type of cryptocurrency after bitcoin is down by 11.72%. Ethereum is now worth $465.260 which is far off the predicted price at the beginning of 2018.
Ripple, Litecoin, EOS and Bitcoin Cash have also been hit hard. These major crypto coins are realizing a huge decrease in value, reaching 35%, 11.38%, 13.82% and 12.56% respectively. To some, the situation is even more critical, with currencies like the IOTA and Monero being down 15.33% and 15.64.
Diagnosing the problem
While many suspects that the stagnation that has been present in the crypto market has caused the drop, it’s possible that sellers have influenced this to drive the prices even lower. This is likely to a move targeted towards to invite big-money investments from large institutions. If that’s the case, Coinrate, Paxful, and other exchanges are likely to experience a further drop.
Aside from that, reports indicate that Coinrail (a South Korean crypto exchange has been a victim of a malicious attack. However, the impact of such news shouldn’t have caused such a drop in the market, keeping in mind that Coinrail rank 90th with a trading volume of mere $2.6 daily.
Though not everyone believes that it’s possible to manipulate prices in a cryptocurrency market, looking at the current chart will say otherwise. In this light, the US government has ordered four multimillion-dollar exchanges to submit its trading information to aid in investigations of a possible price manipulation.
All things considered, investors will find this to be a good time for shopping. This may potentially spark the momentum needed to change the drift. However, no one can truly predict the trend in the cryptocurrency market and those choosing to wait out may not be interested in catching the falling knife.