Cryptocurrency Market Continues to Slump as Ethereum, Ripple, et al. Suffer 20%+ Fall
The cryptocurrency market has continued to slump over the past 24 hours, as major cryptocurrencies including Ripple, Ethereum, and Bitcoin Cash recorded over 20 percent in daily losses.
Since January 15, the market value of cryptocurrencies has increased from 700 to 500 billion dollars in 48 hours. In the last few hours, the cryptocurrency market has been showing signs of recovery as the market capitalization of all cryptocurrencies has increased from $ 450 billion to $ 530 billion.
"Bitcoin decreased a little, Altcoins plunged a lot"
The claims that Bitcoin collapses by a small margin while small cryptocurrences immersed in value are obviously false, since major cryptocurrencies have recorded more significant losses of value than small cryptocurrencies on the market.
Bitcoin has decreased slightly compared to Ethereum, Ripple and Bitcoin Cash, but it has also decreased by more than 15%. Since December, bitcoin has gone from $ 19,000 to $ 11,000.
It is also incorrect to justify the recent decline in the valuation of cryptocurrencies on the market compared to the fiasco of the ban on transactions in China and South Korea. The Chinese government banned cryptocurrency trading in September 2017. Today, the Chinese market has virtually no impact on the global cryptocurrency market.
Many investors are currently concerned about the state of the market because of the sharp fall in the value of cryptocurrencies. But, the cryptocurrency market regularly has corrections of 20 to 30%. For example, when the People's Bank of China (PBoC) and the Chinese authorities banned the initial offer of coins (ICO) and the cryptocurrency trading in September, the price of Ethereum dropped by more than 30% .
Two months earlier, Ethereum has dropped more than 50% from $ 360 to $ 134. Given the massive corrections Ethereum, Bitcoin and Bitcoin Cash have made in recent months, the recent correction is not the biggest correction the market has suffered last year.
Was a correction for a long time
When the market value of cryptocurrencies on the market exceeded $ 500 billion in mid-December, Ethereum creator Vitalik Buterin said he was personally concerned with valuing most of the projects on the market.
He wondered whether the market and the projects within it had done enough to justify the market capitalization of $ 500 million crypto-currencies. While Buterin pointed out that cryptocurrencies like Bitcoin and Ethereum have certainly provided enough services to the general public and consumers, they have not done enough to justify their market ceilings.
"So the total cryptocoin market capitalization just reached $ 0.5T today, but did we win?" The answer to all these questions is certainly not zero, and in some cases, it's pretty important But not enough to say it's $ 0.5T of significant level. "Not enough," said Buterin, sharing a similar sentiment to other co-founders of Ethereum, including Charles Hoskinson of IOHK.
A major correction is healthy for the market that is overflowing with projects without substance lately. Blockchain projects without products and users have earned billions of dollars worth of evaluations, only with poorly written white papers.