It’s been an up-and-down week on the coin market, with prices declining then growing significantly in the space of seven days. From December 11, cryptos cumulatively lost nearly $10 billion of their $110.2 billion market cap. However, from December 15 until today the market has recovered $15.4 billion to reach $115.5 billion in total.
The main trigger for that late growth was a sudden influx of $5 billion worth of BTC into the coin market. On December 17, this fresh supply pushed BTC into a green line, boosting altcoins as well.
Coin market value downpour
Since December 11 (UTC + 01:00), the overall value of the coin market has greatly fluctuated. The week began with a heavy decline, with the market losing nearly 10 percent over several days. As CoinMarketCap shows, market capitalization continued its decline until December 15.
Bitcoin led the industry in terms of price fluctuations, opening at $3,497.55 on December 11. In the following days, the coin experienced a severe decline, hitting a low of $3,191.30 (-8.8 percent) on December 15. However, BTC rose by $350 in a matter of two days, from $3,191.30 to $3,545.86 (11.1 percent) on December 17.
Ripple held second place on the market despite declining from $0.3001 to $0.2859 (-5.7 percent) to start the week. From December 15 to 17, however, XRP followed BTC’s example and its price grew by 14.9 percent.
Following the coin market in general, Ethereum (ETH) lost 7.8 percent of its value, down from $91.58 to $84.44. Due to the green waves and the influx of BTC, its price jumped back to $95.13 (12.7 percent).
Other altcoins behaved similarly throughout the week. Bitcoin Cash (BCH) ended up losing almost $30 in value, from $107.05 to $77.37 (-27.7 percent) on December 15. On December 16 and 17, the major altcoins rose considerably: BCH by 16.8 percent, BSV by 19.9 percent, and LTC by 23.1 percent.
Artificial value pumping?
Although the coin market experienced a general downturn until December 16 (UTC + 01:00), the situation changed drastically the following day. On December 17, most cryptocurrencies saw their values increase on the back of BTC’s rise. It’s not known who supplied the market with an extra $5 billion, or why. However, it’s clear that large investments like these still have the power to boost crypto prices.
Additional money supply might be positive for the crypto market while the market cap continues to decline. As seen this week, Bitcoin and the altcoins thrived thanks to this anonymous injection of capital. Indeed, large investments like this might help stabilize the market during this difficult time. However, if there is not enough support to foster long-term growth, the coin market may simply slip back into its negative pattern once again.