Op-Ed

Why is the Crypto Market Facing a Slight Plunge

In the last 24 hour period, most of cryptocurrencies have seen slight decrements as the market cap turns red, according to Coin360.

src: Coin360.io

In the initial hours of 30th July, Bitcoin seemed to be slightly dominating in the case of increasing trends that followed throughout the week and reached a intra-day high of about $8,285, but since then the currency saw a slight fall and is trading at $8,158 at press time.

Not only has Bitcoin suffered by the decline, but 9 of the top ten cryptocurrencies have also plunged down in the event. Ethereum, the second best currency in crypto plunged down by -0.18% while IOTA suffered the most in the 24 hour period, plunging to about -2.29% and Cardano fell drastically at a rate of -8.77% over the 7 day period, according to coinmarketcap.

scr: Coinmarketcap

Ethereum, which is termed to be the second best cryptocurrency, touched $508.93 in the month of July and was traded at about $483.65 last week, accroding to Bitinfocharts. After falling continuously for about a week, it is now being traded at $460 at the press time.

This decrease in the amount of all coins dragged down the market cap value which touched $304 billion this week, to $294 Billion by press time. The overall market cap fell to about $10 Billion, but this situation might not be as alarming as it seems. Experts predict that market cap might hit a crazy value of around $1 Trillion by the end of the calendar year 2018. Although the currencies have fallen, but, according to the CEO of Kraken, Jesse Powell, in the rest of the months of 2018, cryptocurrencies would see accelerated growth. They would be able to pull back from the bottom to new highs. He also says that many of the businesses depend on cryptocurrency now and the know how of making businesses on blockchain and using cryptocurrencies would eventually “propel the entire cryptocurrency market to cross a valuation of $ 1 trillion”. Although the market is slowly recognizing the importance and potential of blockchain and cryptocurrencies, it will still take time to bring investors around the world to the platform as they still consider investing in digital currencies risky and useless.

According to a recent survey report published by Wells Fargo/Gallup poll, it has been disclosed that a major amount of investors in the United States are holding back from investing in cryptocurrency, specifically bitcoin, owing to all the risky, fraudulent and manipulative activities involved. It is stated in the report that:

The bigger constraint on bitcoin sales is likely the widespread perception that trading in the currency is not safe. While risk is central to how investing works, three in four investors who have heard of online currencies consider bitcoin a “very risky” investment.

These comments by the cryptogiants didn’t quite disturb the dominance of BTC and despite slight decrease in the premium digital currency’s (BTC’s) value over the 24 hour period, the 7 day growth rates of the top ten cryptocurrencies point towards the dominance of BTC, which made it to as high as $8,431 following the market rebound last week and still dominates the market cap with a dominance factor of about 47.59% as shown by Coinmarketcap.

src: Coinmarketcap

Maintaining its dominance, Bitcoin has seen continuous growth over the last month and is up almost 39% and still shows potential of growth. According to Arthur Hayes, the CEO and co founder of BitMEX, “It is predicted that Bitcoin may hit 9000$ or just a shy of $10,000 when it falls again. The currency may see the lows of $5000,” he said in an interview with CNBC. Similary earlier this year, the CEO predicted that the currency would go wild hitting the $50,000 mark, although he also foresees an event where Bitcoin would fall to about $5,000 or even $3,000 showing his mixed sentiment. Similarly, Jordan Belfort, in a interview with Express UK, also vouched for the fact that Bitcoin might reach the highs of $50,000 despite the inevitable blackswan event.

What’s going to happen with Bitcoin is going to be a black swan event in the next six months, by the way just so you know, I’m not saying Bitcoin is going down, it might go to $50,000. Jordan Belfort

Similarly, vouching for the value of Bitcoin, the Billionaire investor and fund manager Bill Miller said that,

There are about 1,600 cryptocurencies out there, and I would say that most of them are probably worthless.

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