CRYPTO BLOODBATH:
Why Bitcoin , Ethereum & The Top 30 Currencies Declined in Value:
On June 27, a major correction in the cryptocurrency market occurred, bringing the market cap of the cryptocurrency market below the $100 Billion region.
All top 30 Cryptocurrencies fell significantly in value, recording nearly 20 to 30 percent decline in market cap. Bitcoin and Ethereum, the two largest cryptocurrencies, also recorded substantial decline in value.
BITCOIN'S DROP IN VALUE:
As demonstrated by previous cryptocurrency market corrections, the decline in Bitcoin price has always led to the correction of the entire market.
Thus, when Bitcoin price fell from around $2,700 to $2,370, the cryptocurrency market underwent a major correction, with Ethereum falling from around $30 bln to $22 bln in market cap.
The value of Bitcoin and other cryptocurrencies are solely based on the demand of the market. Hence, like any other market, the value of cryptocurrencies alter based on the rise and decline of demand from the market. Therefore, if investors can’t justify the increase in the value of Bitcoin or other cryptocurrencies, it is likely that a market correction is imminent.
NEW PEAKS AFTER CORRECTION/DEMAND RISING
There is an increase in demand for Bitcoin rapidly across the world, and an increasing number of governments and countries are starting to recognize, acknowledge and adopt Bitcoin as a digital currency. Most recently, Poland’s largest food delivery platform Pyszne that supports more than 5000 restaurants started accepting Bitcoin despite its rising fees.
Demand for Ethereum, Bitcoin, Litecoin, Ethereum Classic and other cryptocurrencies is rising at a rapid rate. Short-term market corrections are important to evaluate, but investors should not consider corrections as factors for long-term growth.
