Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Crypto Markets in deep correction as Bitcoin and other Altcoins break crucial levels hitting one-month lows.
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”