The crypto market looks to be in no mood to give investors a relief. Today, the world’s largest cryptocurrency Bitcoin has slipped below the crucial support of $8K today, on May 23. This marks Bitcoin’s price hitting a 35-day low wherein Bitcoin has corrected by almost 20% from its high of $10000 on May 6, 2018.
At the press-time, Bitcoin is trading at $7864.47, a 4.5% down from its price in the last 24 hours with a market cap of over $136 billion, according to the data on CoinMarketCap. However, it’s not just Bitcoin alone which is facing the brunt. The overall market cap has corrected by more than $40 billion in just the last three days of time. According to the one-month chart on CoinMarketCap, the overall market valuations have corrected by more than 25%. The one-month peak of the market was on May 6 where the overall valuations were $470 billion. Today, the overall valuations have fallen to a low of $343 billion.
However, Bitcoin is still trading at a 30% premium to its 2018 low of $5,947 seen on Feb. 5. Although Bitcoin has managed the latest correction below 5%, all other top-ten altcoins on the index have slipped nearly 7-8%.
The second-largest cryptocurrency by market cap Ethereum has corrected by more than $100 in the last two days and is currently trading close to $600. At the press time, Ethereum is trading at $619 with a slippage of over 10.5% in the last 24 hours. The current market cap of the cryptocurrency stands at $61 billion.
On the other hand, Bitcoin Cash and Ripple have hit their one-month lows which are now trading at $1044 and $0.63 respectively, at the press time. The crypto markets started correcting significantly last week itself during the Consensus 2018 conference. Although the conference witnessed a record number of attendees, the crypto markets didn’t respond due to the enthusiasm.
Fundstrat analyst Tom Lee who had early predicted a bull run in the market before the conference, however, had to own up his false prediction later on. While talking to Bloomberg, Lee said:
Crypto still faces significant internal resistance and hurdles within traditional financial institutions, but it is encouraging, nonetheless, that a large share of incremental attendance are financial institutions.”
Lee also took to his Twitter account stating three possible reasons that turned out to be against his earlier predictions. HE wrote: “CRYPTO: #Consensus2018 rally did not happen, very disappointing. What we needed was a trifecta of progress: (i) institutional custody/tools; (ii) buy-in by banks/investment managers; (iii) regulatory clarity (3 of 3 needed), but we got progress on (i) and (ii).”
However, Lee still remains bullish on his predictions and thinks that Bitcoin can hit $25000 by this year end. Lee said that there is a lot of positivity in the space with institutional participation growing. He said:
It is obvious that crypto still faces significant internal resistance and hurdles within traditional financial institutions. In our many conversations with institutional investors/banks, we find that specific teams may be enthusiastically committed, but widespread internal acceptance of crypto/blockchain faces hurdles”