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Bloodbath in Cryptocurrency Market Continues, Bitcoin Slips Below $5000

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by Bhushan Akolkar · 5 min read
Bloodbath in Cryptocurrency Market Continues, Bitcoin Slips Below $5000
Photo: Pixabay

The crypto markets entered a major correction on Monday while losing $25 billion market cap for the second time in last one week.

The worries for the cryptocurrency investors grow further as crypto markets entered a DEEP RED correction on Monday, Nov. 19. According to the charts on CoinMarketCap, cryptocurrency market lost a whopping $25 billion in just last 24-hours. At the press time, the crypto market valuation is at its one year low at $152 billion.

In the last one week, the crypto market correction has exacerbated from bad to worse. In last one week, the crypto market has lost nearly $60 billion of its valuations with Bitcoin and other altcoins taking a major hit. The free fall in crypto prices is pretty steep at the moment.

Bitcoin Makes a New One-Year Low, Goes Below $5000

At the press time, Bitcoin (BTC) is 13.6% down since yesterday and is trading at $4655.74. The world’s largest cryptocurrency is breaking all crucial support levels since the last one week. In one week, Bitcoin has lost nearly 30% of its price and valuation. Currently, the Bitcoin valuation stands at $81.2 billion. However, one thing which remains consistent is that Bitcoin continues to dominate over 50% dominance in the crypto market.

Bitcoin is currently trading to its low valuations in the last one year. Some analysts predict that the ongoing has war in the Bitcoin Cash camp is one of the reasons behind the Bitcoin price fall. Moreover, several BTC mining pools have recently shifted their resources to protect Bitcoin Cash ABC network.

Altcoin Price Fall is Even More Scarier

Just as the condition of Bitcoin gets worse, the altcoins space is hit even harder. Ethereum (ETH) is on an absolute free fall in the last one week losing 30% of its valuation. At the press time, ETH is trading at a price of $137.38 and has lost 14.5% over the last 24-hours. Ethereum is continuously making new one-year-lows since the last week. For the first time this year, Ethereum market cap has slipped below $15 billion.  In the last few months, Ethereum has been consistently facing problems with regards to its scalability and network upgrade.

XRP, on the other hand, is showing very high stability in comparison to other cryptocurrencies. Since Monday, Nov. 19, XRP has lost less than 5%. At the press time, XRP is trading at $0.47 with a market cap of $18 billion. The gap between XRP and Ethereum continues to widen and it looks like XRP is strongly cementing its position at the Numer 2 spot. One reason for the XRP to perform well could be the string of major deals by Ripple for its XRP-powered xRapid payment services with several global financial institutions over the last few months.

Bitcoin Cash (BCH ABC), the most controversial cryptocurrency looks to be in deep shit at this moment. Bitcoin Cash has lost a whopping 43.34% in the last 24-hours with its price falling to just $209. Bitcoin Cash is the most heavily affected cryptocurrency in this market fall. In last one week, Bitcoin Cash lost more than 60% of its valuation. Post its hard fork, the BCH is on a continuous steep fall.

However, in this market correction, Stellar (XLM) manages to grab a spot in the top-five crypto assets by market cap. Rather it has even toppled Bitcoin Cash and is the fourth-most-valued cryptocurrency with $4 billion market cap, at the press time.

SEC Tightening Its Grip On the Crypto Market

Last Friday itself, issued its first civil penalties against two crypto firms for failing to registers their ICO tokens as securities. As a result, Paragon Coin Inc. and Airfox will both have to pay $250000 as penalties to compensate its investors. Justin Litchfield, chief technology officer at ProChain Capital says:

“The selloff is related to enforcement, which is almost certainly underway. Projects are being made to return investor money, which, after having spent a ton of money marketing their $100 million ICO on a lavish party-filled road-show that was the norm for this vintage of ICOs, will be tough.”

It looks like several altcoins projects are emptying their wallets and converting their tokens fearing the SEC onslaught. Bram Cohen, a co-founder of the proposed digital currency Chia, shares his view with Bloomberg.

“…it seems likely that a lot of what’s going on now is ICOs trying to liquidate all their cryptocurrency for cash to make off with the goods before the SEC comes down on them,” he said.

More Worries Ahead?

Speaking to Forbes, cryptocurrency investor and trader Altcoin Thoreau said that the crypto market correction can continue further.

“Price tells us the trend has been bearish since crypto’s parabolic move and top in 2017. Though the market conditions are not the same if we compare the last parabolic move for Bitcoin in 2013 to today’s market we still have some time to go before the trend reverses. The last bear market was more than 600 days and at the time of this writing the current bear market has only been 344 days,” the trader said.

Thoreau further added:

“Though the two are not the perfect comparison I do think it’s important to note and keep in mind. Most indicators have bottomed out and reached new lows we haven’t seen for a long time on Bitcoin. Boom and bust cycles are nothing new for crypto and I believe we still have some time to go before reaching the bottom.”

Certainly, nothing at this time seems to be falling in way of crypto investors and enthusiasts. However, this might turn out to be a cleanup towards getting more accountability for legitimate crypto projects.

Altcoin News, Bitcoin News, Cryptocurrency News, News
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