Drop in Prices: A Turbulent Week for the Crypto Market

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Drop in Prices A Turbulent Week for the Crypto Market

Since the BCH war started on November 15, Bitcoin (BTC) broke its strong yearly support of $6,000. From that point on, its price has continued to plummet.

Last week, the crypto market crashed to its lowest level in 2018. The price of BTC fell all the way to $3,284 and ETH to $83.47. ETH also had a flash crash to $13 on Coinbase. However, almost all major cryptocurrencies have recorded gains since hitting those lows.

Is Bitcoin recovering?

BTC’s drop to $3,284 – its lowest price since August 2017 – worried many people last week. However, BTC has since gained more than $200 in value and is trading around $3,500, which still represents a weekly decrease of 10 percent.

Many BTC investors had hoped for the early approval of exchange traded funds (ETFs) to boost the market’s recovery. However, the United States Securities and Exchange Commission (SEC) has again postponed its decision. The new and final deadline for this decision is February 27, 2019. Market analysts expect an influx of institutional money in Q2 of 2019 if ETFs get approved.

Despite these price decreases, BTC retains its strong dominance with more than 55 percent of the total market cap. However, the falling price has led many miners to switch off their mining equipment, causing the hash rate to drop to July levels.

Bitcoin (BTC) price chart December 3 – 10. Source: CoinMarketCap

ETH flash crash: Thin buy order book

On December 7, ETH’s price plunged to $83.47, the lowest it’s been since May 2017. However, before experiencing the biggest sell-off in its history, ETH flash crashed. On December 6, its price sank to $13 on Coinbase.

The reason of this dramatic flash crash is still unclear. Coinbase later clarified that it was not related to a system failure. So, it seems that someone’s market sell order might have ripped through the thin buy order book. It’s even possible that the market order was placed by accident.

The third-largest cryptocurrency has now recovered to around $92, but it’s still down 17 percent from last week.

Ethereum (ETC) price chart December 3 – 10. Source: CoinMarketCap

The flippenning of BCH–BSV–USDT

On November 15, Bitcoin Cash (BCH) activated a hard fork that splintered its network into two competing versions. This triggered a huge loss in the coin’s market cap. Since the BCH war started, the price of BCH (ABC) has dropped by 75%.

After reaching an all-time low of $97 on December 7, BCH is now trading at around $106.

Although it appears that BCH has won the war, on Friday the market cap of Satoshi’s Vision (BSV) rose briefly above BCH’s. When the whole market was in red, BSV achieved an impressive price increase of 20 percent and surpassed BCH.

Just before this interesting reversal, BSV’s Calvin Ayre shared news about a lawsuit. Ayre said he was targeting the people behind an alleged scheme to take control of the Bitcoin Cash network for personal gain.

BCH has become the sixth-largest currency by market cap since then, overtaking BSV but losing ground to Tether (USDT). USDT’s current market cap is almost $1.9 billion, $25 million higher than BCH’s.

Bitcoin Cash (BCH) price chart December 3 – 10. Source: CoinMarketCap

Is Coinbase about to list XRP?

During the past week, Ripple (XRP) lost around 18 percent of its value. It is currently trading at $0.30, although it remains the second-largest cryptocurrency by market cap.

On December 7, Coinbase announced that it was exploring the possibility of providing trading support for over 30 cryptocurrencies, including XRP. While the news buoyed investors, Coinbase clarified:

We cannot guarantee that all the assets we are evaluating will ultimately be listed for trading.

It remains unclear why the exchange released a new list when the previous list wasn’t yet complete. Coinbase’s listing of lesser-known coins also came as a surprise to many involved in the industry.

Ripple (XRP) price chart December 3 – 10. Source: CoinMarketCap
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