It has been some time since we created a market update, but it seems like it is a good time to start again considering the events that have occurred in the last week or so.
We had a long summer full of stagnation. The sideways action was the talk of the town, and honestly a necessary break from such a volatile market in the past. In fact, for the first time in the last couple of years in the crypto market, the traditional markets actually seemed to be more interesting in terms of overall market action! That all changed in the events of this last week…
Lots of speculation is being passed around for the MASSIVE downturn in the market. Most seem to think that it is completely random, others choose to believe that the most recent hardfork on the Bitcoin Cash blockchain is the culprit. Those who believe that it is random have lots to learn about how markets tend to operate.
Let us begin this analysis in our traditional way by looking at Bitcoin first.
Bitcoin was steady sitting around the $6,500 USD mark for a long time, only seeing a couple moments of it dropping to sub $6,000, and then regaining lost ground fairly consistently. There hasn’t been any catalyst that really can explain the most recent drop, but then again there also hasn’t been anything in the market that would suggest Bitcoin should move anyways! Still, as of writing this update, Bitcoin is sitting on an astonishing $4400 USD! These roughly level 75% lower than last years high. Should we be concerned? Well, there are varying opinions on that notion as the technical game has taken a sudden shift. It is difficult to gauge due to the increased volatility, but it would be difficult to suggest that Bitcoin can be seen under the $4000 mark. There is a lot of support at these levels, and an active community that will be willing to defend it. That being said, if Bitcoin falls below the $4000 mark, we could be in for a cold winter…
How about the internet killer Ethereum? Well, as you can see by the recent rank drop to 3rd in market cap, and the incredible hit to the price that has been going on, Ethereum is dropping like flies. ETH is following a similar pattern to Bitcoin, but with more downward action. A lot of Ethereums downward action is due to the ICO space and lack of roll out on scaling solutions. Sitting around $130 USD, we are actually looking at a much-needed drop in price for Ethereum. ETH will continue to follow market trends, but a good value to keep in mind is the $120 USD mark–we will keep you updated if we hit these levels!
Ripple or XRP seems to be the heavily armored coin, not only surpassing Ethereum for 2nd place but also maintaining its value relatively well. I know there are a lot of Ripple haters out there, but you have to admit that they are well positioned in the market—and that is confirmed by how they are performing in the market downturn. Ripple is actually being used and has actual value to purchasers. There shouldn’t be too many worries with Ripple, and it is highly likely that it along with Ethereum will be battling for 2nd place in the weeks to come.
Finally, we can talk about Bitcoin Cash. Is there really much to talk about? Well, there is and there isn’t. Bitcoin Cash has a functional product, and somewhat of a scaling solution to transactional volume. This seems irrelevant to what actually is going on with the Bitcoin Cash community. Even in a highly volatile and manipulated market like crypto, the market still seems to see through the BULLSHIT. Bitcoin Cash is founded on deception and has transformed itself into a con coin. Many people are blaming this market crash due to the Bitcoin Cash hardfork. This might seem plausible, but there are more factors that contribute to wide-spread market fear. BCH has dropped the most out of all the major projects and is likely to continue. We will go into more detail about what is needed to be done in the Bitcoin Cash community, but that is for another day. For now, keep a close eye on the BCH price action and market cap ranking…it should prove to be very interesting.
The crypto market has entered a period of interesting analytics, and uncertainty is a key driver to all the volatility. Sure the prices of all these projects are rapidly declining, but at the same time talent entering the blockchain world is still skyrocketing! Don’t forget, that even in the worst times there are still positives to account for.
We will provide more frequent market updates now, so make sure you stay tuned and stay positive!