The cryptocurrency market is undergoing a phase of not only uncertainty but also a bloodbath after the Securities and Exchange Commission (SEC) has postponed its decision on bitcoin exchange-traded fund (ETF). It is not just bitcoin or Ethereum, but other digital currencies to are going through a phase of horror. The current week has not only wiped out over $19 billion but also brought back nearer to the one existed in November 2017. This is nothing but a U-Turn after peaking in December last year.
Manipulating the Market
Several speculators in the virtual currency sector have started to believe or charge that the SEC is only trying to manipulate the market. As if that was not enough, there were reports suggesting that Whales are trying to make a move due to the recent events or news, ambcrypto.com reported. Though there is a general belief that this was the reason behind the price crash of bitcoin, speculators are not sparing the initial coin offerings (ICOs) for the price drop of Ethereum.
Their contention is that the ICOs have started to make money from the market to realize profits since their projects have failed to take off as promised or expected. There is no doubt that this kind of negative factors has played a big part in dragging down the price of most of the digital coins besides their market dominance. In the process, the overall market capitalization has also taken a beating, which was quite natural under the circumstances.
On Tuesday at about 7.00 a.m. Eastern Time, the overall market cap is approximately $193.7 billion. This would mean that the market has already wiped out over $19 billion since the start of the current week and reached the lowest point in the current year. Significantly, this level or around $194 billion of market cap was seen in November last year. The threat of further loss cannot be ruled out in the present circumstances.
Importantly, it is not just the market cap that has taken a U-turn to November. The leading digital coin, Bitcoin, dominance also witnessed a similar fate. The virtual asset’s dominance is at about 53.75 percent currently and is seeing a constant increase in the current month. At the same time, this meant that its dominance level was more or less similar to the one seen on November 15 when it was around 53 percent.
Ethereum is the second dominant force in the crypto-coin market with 14 percent. The digital currency has hit the most as its lifetime low on Monday trading below the $300 mark and is struggling to cross the level. The price of Ethereum is about $265 with a market cap of $26.85 billion. During the last 24-hour period, the virtual asset has shed 17.76 percent, and for the 7-day period, the loss was 35.3 percent.
As far as bitcoin price is concerned, it traded below $6,000 mark for a brief period on Tuesday and bounced back to trade above the level. The digital coin is trading about $6,062 and lost 6.43 percent in the 24-hour period whereas the loss in the 7-day period was 14.25 percent.