Cryptocurrencies Lose Another $20 Billion + in Just 24 Hour as Investors Look for Culprits
The cryptocurrency market has experienced a very hard time in November. While the beginning of the month seemed to bring hope for some cryptocurrencies, the second and third week were clearly devastating for the space.
On November 19, virtual currencies fell to the lowest level in over a year. And the total market capitalization of virtual currencies is currently similar to the one the market had in August 2017 before the bull run.
Bitcoin (BTC), the largest virtual currency in the market, has experienced a very hard drop in the last 24 hours. According to data provided by CoinMarketCap, Bitcoin lost 16.18% during the last day and it has reached a market capitalization of $77.63 billion dollars. Bitcoin’s price is currently $4,465 dollars, the same price it had back in October 2017.
Ethereum continues to fall as well. Last week, Ethereum lost its position in the market as the second largest crypto in the market. XRP was able to overtake ETH. In the last 24 hours, Ethereum lost more than 15% of its price, being traded close to $133 dollars. Moreover, its market capitalization is currently $13.78 billion dollars.
However, Ethereum’s problems seem to be exclusive to this virtual currency. ICOs, which received ETH for their coins, have been selling part of the funds they gathered to be covered against future losses. Moreover, the U.S. Securities and Exchange Commission (SEC) has announced an enforcement action against ICOs.
Bitcoin Cash (BCH) is the virtual currency that has experienced the largest loss in the market. In the last 24 hours, this virtual currency lost more than 40% of its value. It is currently being traded under $218 dollars and it has a market capitalization of $3.8 billion dollars. Furthermore, Stellar Lumens (XLM) was able to surpass Bitcoin Cash as the fourth largest cryptocurrency.
XRP has been the best performing altcoin in the top 50. It has lost around 8% in the last 7 days, compared to other currencies that lost more than 30% of their value. This is why XRP is currently the second most valuable virtual currency in the market with a market cap of $18.29 billion dollars.
Some cryptocurrency enthusiasts have been talking about XRP surpassing Bitcoin in the near future. However, XRP would have to grow around 330% in order to be able to take the first position in the market.
The whole cryptocurrency market has lost over 32% of its value in the last 6 days. The whole market cap moved from $210 billion dollars to $143 billion dollars just a few hours ago. This is the same value that the market had back in October 2017.
Clearly, virtual currencies are not experiencing a very positive time. The Bitcoin Cash upgrade has generated a lot of uncertainty about the future of the space and has been massively destructive for Bitcoin and most of the virtual currencies in the market. Until now, there is no clear answer about which proposal (Bitcoin ABC or Bitcoin SV) would replace Bitcoin Cash.
The future of virtual currencies is also not clear. According to the cryptocurrency analyst on Twitter @BTC_Macro, this year, Bitcoin would be traded under $4,000 dollars and Ethereum (ETH) under $100.
This year, you will see BTC in the $4000's or lower, and ETH at $100 or lower.
If I'm wrong, I will send a box of Cuban cigars to everyone who retweets this.
— Bitcoin Macro (@BTC_Macro) September 17, 2018
However, John McAfee tried to calm the markets down. On Twitter, he said that people panicked but this is how bear markets behave. Additionally, he mentioned that he lived several bear markets in his life and that all of them were followed by a ‘glorious spring.’
People have panicked. But there's no fucking need. We're in a bear market. They suck, yes, and not like a hooker with no teeth. But I'm 73 and have seen this dozens of times in many markets. Bear markets are like Winter. It's always followed by a glorious Spring. Fucking relax.
— John McAfee (@officialmcafee) November 20, 2018