The crypto market showed little price movement and very low volatility within the past few days and weeks. All the more surprising is the sudden drop in the price of Bitcoin and almost the entire altcoin market.
Some studies have shown that the crypto market’s volatility has reached its lowest level since December 2016. Within the last three weeks, the total market cap has been hovering around the $220-billion range.
In the last few hours, however, about $13 billion has been wiped off of the crypto market. CNBC reported that at around 10:23 a.m. Hong Kong Time, all major digital coins declined in value, with an average price drop of between 5 and 10 percent, according to data from CoinMarketCap.
Bitcoin’s price has fallen more than 5 percent. The market leader was previously able to maintain the support level along the $ 6,500 mark for a long time. The remainder of the market has also suffered, with Ethereum losing 9 percent and falling to its lowest level since July 2017. XRP and IOTA also plummeted by almost 10 percent. Ripple (XRP) has been bearish in the last seven days. The price of the third crypto coin by market cap is still falling, despite the increased mainstream adoption of the coin.
This pattern has often repeated itself in recent weeks, so this price slide should not come as a surprise, and shouldn’t be exaggerated. The trading volume has been extremely low lately and it seems that the crypto market has calmed down and stabilized. At this point, therefore, short-term rally seems unlikely.
There are currently large sell-offs in the Asian markets, especially in South Korea and Japan. But it is too early to identify a clear reason for the current trend. Many industry experts are trying to predict the next possible course, but there is much disagreement over whether the bottom has already been reached.
The next hours and days will show in which direction the crypto market is moving.