|Aug 11, 2018 06:09 PM||By: John Patrick Mullin | 8791 Views|
Over the past 24 hours, the crypto market has reported a loss of $18 billion, as major cryptocurrencies including Bitcoin, Ether, EOS, and Bitcoin Cash dropped by 4 to 13 percent.
While Bitcoin finished the day with a 4 percent decline in its use, Ether, the native cryptocurrency of Ethereum, plummeted by 13 percent upon the US dollar, becoming one of the worst performing major cryptocurrencies alongside NEO.
Tokens recorded the precipitous drop in their value on August 11, as most Ethereum-based tokens such as Theta Token, Aion, Pundi X, Aelf, DigixDAO, WanChain, and VeChain reported a drop of around 14 to 18 percent.
For the first time in 2018, Bitcoin, the most powerful cryptocurrency in the global market, has obtained 50 percent of the market share, acquiring its year-to-date (YTD) high on the dominance index.
The immediate increase in the dominance index of Bitcoin which coincided with the spike in the volume of Tether have shown that investors have become hesitant towards taking high-risk and high-return trades, frequently due to the lack of confidence in the short-term trend of the market.
Over the past few weeks, tokens have lost over 50 percent of their power against Bitcoin, which has also fallen by more than 20 percent since late July. For instance, EOS, dubbed the “Ethereum Killer,” has dropped 50 percent of its market estimate in the past 30 days, due to the uncertainty and volatility in the market.
In recent months, the volume of BTC and the rest of the crypto market have substantially reduced. In late July, when BTC initiated a encouraging run to the higher end of $8,000, its volume neared the $6 billion mark.
As of August 11, the volume of BTC continues below $4.4 billion while the volume of Tether (USDT), a stablecoin whose value is hedged to that of the US dollar, has risen to $2.8 billion, more than $1.2 billion higher than the volume of Ethereum.
As July, traders have discovered that the price trend of small cap tokens regularly follow the price trend of XRP and EOS. In the past 24 hours, Ripple and EOS have dropped 11 percent of their value upon the US dollar.
Due to the overly sharp downtrend of major cryptocurrencies, in order for the cryptocurrency market to retain in a large mid-term bull run, the market would need to bottom out at a moderate price range.
Yesterday, on August 10, Some news channel reported that critics see BTC testing a major support level at around $5,800.
“If the price evolution of BTC in the short-term plays out the same way as February, April, and May, BTC will likely fall below $6,000 in the upcoming days, probably bottoming out at $5,700 to $5,800, as several analysts suggested,” stated.
But, failing to secure strong force in the higher region of $5,000 could lead BTC testing $5,500, which may guide to a further drop for the cryptocurrency market.