Summary:
- Bitcoin has tumbled 20% so far this week dragging down other altcoins
- The whole crypto capitalisation has shrunk by $30 billion
- A new ETF fund with exposure to Bitcoin probably won’t be launched this year
Cryptocurrencies have been hit hard this week. Bitcoin was among top losers plunging over Wednesday and Thursday almost 20% toward $7750 (the lowest level since June 2019). Other cryptocurrencies also saw their valuation melting. What was the cause behind such a brutal decline?
Among possible ones we present the following:
- A sharp decline of blockchain computing power on Monday (ca. 40%)
- Margin calls in the BitMex exchange
- A disappointment regarding the launch of futures by the Bakkt International Exchange
- A delay of a SEC decision regarding crypto regulations
Ethereum
Ethereum dived along with Bitcoin and this plunge was halted at around $165. Since then the price has been moving nowhere. It’s worth noting that some major technical levels might be found at either $178 or $220. While the price breaks through the mentioned support then it could even move toward $130. Source: xStation5
Ripple
A technical point of view suggests that Ripple must not already be out of the woods as the price crashed the crucial demand zone. On the other hand, when other altcoins see a bounce, then a bullish pullback could take place here too. If so, this move could take the price up to $0.262. Source: xStation5
The total crypto market cap has dwindled by roughly $30 billion thus far this week. Source: Coinmarketcup.com
Crypto news:
- A Bitcoin ETF will probably not be launched this year, such a report was brought by James Seyffart, a Bloomberg Intelligence analyst
- Peter Wuffli, a former general director in UBS, wants to use the crypto market to tokenize assets like shares, properties, commodities and pieces of art
