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TechnologyCrypto Crash Prompts Guessing Game as Bitcoin Breaches $10,000 Again

23:41  28 august  2019
23:41  28 august  2019 Source:   bloomberg.com

In Wild Crypto Week, Bitcoin Gains and Grabs Bigger Market Share

In Wild Crypto Week, Bitcoin Gains and Grabs Bigger Market Share In another wild week for digital assets, Bitcoin extended its dominance, grabbing a greater share of the cryptocurrency market as most alternative coins declined. Bitcoin now makes up close to three-quarters of the entire crypto universe, according to data from Coinmarketcap.com. Its market capitalization is above $211 billion, 10 times that of the next-largest digital asset, Ether. And in a week when traditional financial markets were roiled, its price has held up, too: Bitcoin rose 14% over the seven days through Friday, while prices for alternative assets including Ether and XRP dropped.

(Bloomberg) -- Cryptocurrencies plunged suddenly in afternoon trading on Wednesday, spurring a guessing game of potential catalyst among enthusiasts and investors. The price of Bitcoin dropped below $10,000 for the first time since July.

The largest digital token fell as much as 5.6%, before trading at $9,686 as of 3:40 p.m. in New York. Peer coins also sold off, with Bitcoin Cash falling close to 4% and Litecoin dropping about 8%.

Crypto Crash Prompts Guessing Game as Bitcoin Breaches $10,000 Again© Bloomberg Bitcoin dropped as much as 5.6%

As with many things crypto, enthusiasts and skeptics alike were quick to point the finger on Twitter and Reddit, though it remained anyone’s guess as to what the catalyst was.

Bitcoin’s Surge Means Smaller Rivals May Be Due for Rallies

Bitcoin’s Surge Means Smaller Rivals May Be Due for Rallies In the crypto world, Bitcoin continues to reign supreme. The largest digital asset is outperforming the next three biggest alternatives this year. It’s managed to hold above the key $10,000 level in the face of increasing headwinds. In times of recent market turbulence, it’s even taken on somewhat of a safe-haven accreditation. But technical indicators show the price action between Bitcoin and alternative tokens is nearing its highest correlation this year, indicating that a so-called alt season may be on the horizon.

“From our end, it looks like it was a sell-off to cash settle futures that are coming due on Friday for BTC,” said Dave Balter, chief executive of Flipside Crypto Inc. in Boston. His firm tracks blockchain transaction data, differentiating between users and speculators, and includes large trades and their originations.

Thin trading volumes likely exacerbated the moves. That made sense to Jeff Dorman, chief investment officer at Arca.

“It’s the week before Labor Day. Half of crypto is at Burning Man and the other half is sitting on their hands doing nothing,” he said. “Volumes are low and it takes very little to move markets right now, and you have big futures/options expirations coming up at the end of the week. The only definitive thing I can point to is that the move was led by declines in EOS, ETH, XRP, BCH, LTC and other large-cap tokens that have been out of favor for months. I just don’t think there are a lot of investors willing to defend price right now.”

To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Olga Kharif in Portland at okharif@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka, Rita Nazareth

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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