Things have evolved from bad to worse for all cryptocurrency markets over the past 24 hours. For the first time in a while, the Bitcoin price may actually go below US$2,000. Although such a retrace isn’t necessarily bad news off the bat, it also shows there will be a lot of proverbial blood in the water. All currencies are literally bleeding value right now, although some are trying to buck the trend.
Cryptocurrency Slum Continues With Another Sharp Downturn
It has to be said, the cryptocurrency markets have been extremely bearish over the past few days. It was only a matter of time until we would see a price decline such as the one present on the charts right now. Experts predicted it would only be a matter of time until we would see a big Bitcoin price retrace. Unfortunately, that is exactly what is happening right now, with no real end in sight.
To put this into perspective, Bitcoin alone lost over 12.3% in the past 24 hours. That is quite a powerful downturn for the world’s leading cryptocurrency, as most of its losses were limited to a few percent here and here. Going into negative double digits is something we rarely see from Bitcoin these days, unless major news breaks. So far, that has not happened.
However, the August 1st deadline keeps coming closer, and a lot of people are very concerned about what the future may hold for Bitcoin. If a chain split were to occur, things quickly go from bad to worse for Bitcoin. Even if one of the chains only survives for a day or less, it would set a very dangerous precedent for the world’s leading cryptocurrency.
Then again, one would expect most Bitcoin holders to store their balance somewhere safe and look at things from a distance. There is no reason to sell Bitcoin right now, as no one will actually lose coins if they store them in a wallet only they can control before July 31st. In the worst case, people will only have their coins on one chain, just like they do now. The best case scenario would see people holding the same balance across multiple blockchains, which will allow people to make free money by not selling Bitcoin right now.
Other currencies are dragged to the bottom alongside Bitcoin as well. Ethereum, Ripple, Litecoin, Dash, ETC, and all other top currencies see their value drop at an alarming rate. Right now, there is no cryptocurrency in the top 50 which notes any gains. Instead, quite a few coins and tokens are down by 20% or more. Quite a substantial amount, as it will take weeks, if not months, to recoup some of these losses. Rest assured there are some smaller coins noting losses of over 25% as well.
With the total cryptocurrency market cap dipping below US$75bn, things are looking anything but great right now. It is not all doom and gloom, though, as we have seen such retraces in the past. Bitcoin and consorts come out stronger every single time such an event happens. Sadly, no one can predict when the reversal might take place. Cryptocurrency is still a small and fickle market It doesn’t take much money to shake things up in a positive or negative manner. [The Merkle]