Crypto Market Valuation Drops to $250 Billion, Volume Declines Substantially

[Elmer1]

The valuation of the crypto market has dropped by $50 billion within a week, from $300 billion to $250 billion, led by the fall of Bitcoin.

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In the past 24 hours, the Bitcoin price fell from $7,250 to $6,950, extending its loss on August 4 and recording another 4 percent loss on the day.

Volume is Tanking

Last week, the volume of Bitcoin hovered around at $5.5 billion while the volume of the entire crypto market exceeded $18 billion. As of August 5, the volume of Bitcoin remains below $4.1 billion and the daily trading volume of the entire market has declined by $7 billion within a seven-day period.

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Often, when the price and the volume of Bitcoin fall, the demand for US dollar-backed stablecoin Tether (USDT) tends to increase, as investors move towards hedging the value of cryptocurrencies to that of the US dollar.

However, in the past 24 hours, the volume of Tether has also declined from around $3 billion to $2.5 billion, suggesting that overall market activity in the cryptocurrency market has dropped over the last several days.

The struggle of the crypto market and the lack of momentum from major digital assets come in a period in which the cryptocurrency sector has seen some of the most positive developments in its history.

Earlier this week, the world’s largest stock market NYSE and coffee retailer Starbucks disclosed their collaborative effort to increase the usability of digital assets globally, as a recognized and legitimate payment method. In the long-term, the forward-thinking approach of Starbucks and NYSE is expected to drastically improve the adoption of cryptocurrencies like Bitcoin and Ethereum by merchants. Despite these positive events, along with the resurgence of Bithumb, a major cryptocurrency exchange in South Korea, the crypto market is continuing to demonstrate a lack of demand and volume.

Too Unstable

It is evident, based on the sudden movements in the price of Bitcoin which do not reflect the positive developments in the cryptocurrency sector, that most of the major drops in the past month were caused by movements in the over-the-counter (OTC) market.

In its latest report, as CCN reported, UBS, the Swiss multinational investment bank, emphasized that Bitcoin is too unstable in its current form to experience mainstream adoption.

“Our findings suggest that Bitcoin, in its current form, is too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class,” the report of UBS obtained by Bloomberg read.

If BTC and other major cryptocurrencies continue to show signs of manipulation and abnormal behaviors, the US Securities and Exchange Commission (SEC) could potentially reject BTC exchange-traded funds (ETF) and public instruments based on digital currencies due to their high volatility and manipulated markets.

Some regulated financial institutions including NYSE and Nasdaq have reaffirmed their support toward BTC and the growing market of cryptocurrencies, which could stabilize the market in the mid-term.

[Elmer1]

Whos there a day trader ? This is a big chance to earn lot of profit

[Slow death]

has been a very, very complicated year. Banks are proving to be one of the Achilles' heel for bitcoin and it is very difficult to overcome these obstacles, which are central banks and commercial banks. As if we had no major problems, our bitcoin news channels continue to publish rumors and this made the crypto community no longer take seriously what news channels publish. It is like if the community reacted only to negative news and did not believe in the positve news. A lot of investors are likely to have already anticipated that the SEC is likely to disapprove of the ETF bitcoin. If we pay attention, we realize that this year there are only ETFs as the only hope of creating some price increase, but if the ETFs are not approved? what happens? the price will fall a lot.

Debunking 6 False Rumors Plaguing Bitcoin in 2018

this is a very interesting article because it goes meeting what I was saying, we need to spread the word that use bitcoin have their benefits and we have to encourage people to use bitcoin as a means of payments. And our news channels should be responsible and stop publishing rumors.

[BrewMaster]

it is not market "valuation" it is market "capitalization" which is a meaningless and false metric to even use for cryptocurrency markets. more importantly it has nothing to do with "value" of the market.

Whos there a day trader ? This is a big chance to earn lot of profit

only if you want to short these altcoins. otherwise there is no point in trading most of them these days.

[kriptowitch]

It's not unusual. Just a small market correction. I have seen such details for a long time. So 50 is quite stable and not a terrible amount for the market.

[Elmer1]

this is a very interesting article because it goes meeting what I was saying, we need to spread the word that use bitcoin have their benefits and we have to encourage people to use bitcoin as a means of payments. And our news channels should be responsible and stop publishing rumors.

The solution in financial problem . Like me.

[karungbitcoin]

That still normal, market cap of crypto also has high volatility the same thing like the price its self. In the long term market cap of crypto possible to increase to 10 times, we can se this from history market cap of crypto in the beginning of last year 2017 until now, the market cap was going up multiple times. The marketcap will go higher when more new people interesting about crypto, so we should promote the benefits of  this market.