It was a grey day for the crypto world. Bitcoin slid below $3,500 eventually cleaning away $5 billion from the market. Other assets like Ethereum also witnessed a 6 percent downfall as compared to the US Dollar.
A 4.8 percent of fall was recorded if all these digital assets were taken into consideration. The reason behind this tragic fall is assumed to be as a heavy sell-off on January 11.
Before a 3 percent fall in the Bitcoin rate, an online trader by the name of Hsaka declared that the Bitcoin was trudging towards a negative trend which can be judged seeing its poor show on January 11 and 12. He even wrote the fall made earlier by the currencies was led by a rise. But a second fall will definitely show a sign of instability and bearish trends. After this statement, the Bitcoin rate fell further from $3,700 to $3,476, which records a 6 percent slide.
The daily low volume portrayed by the digital assets including Ethereum and Bitcoin has been a matter of concern for the last 48 hours. If only Bitcoin volume is taken into account, the volume has decreased from $15 billion to $ 13 billion.
It seems that the market has let loose due to the sell-off pressure along with the low volumes. A resistance is difficult to hold on to and the market in short term still shows signs of instability.
An investor in cryptocurrencies, Josh Rager, is of the opinion that if in the days to come, the volumes do not reach to a considerable extent; a fall in Bitcoin price is expected. He has quoted that this fall could continue for days or weeks. He confirmed that a lot of buyers were on standby providing it support below $3000.
With Bitcoin struggling to show its potential in a price parameter of $3,500 to $3,700 other important cryptocurrencies namely Ethereum, Bitcoin cash and EOS saw their rates slashed by 8 %, 7.5 % and 7 % respectively as compared to USD.
TRON, which had a bull run and made positive gains in contrast to Bitcoin in the earlier week because of the advancement it made to commence a token, also saw a fall more than 10 %.
The digital market may bounce back, though in a lesser price range and we may see the bears finding it challenging to push the rates further down because of bulls ready to jump into the market for buying at lows.
The coming days are very crucial for the crypto market with uncertainties looming large. Short term losses would have to be dealt with if major currencies fall, leading to other digital assets to slide too.
The previous three days have seen a receding volume of cryptocurrency exchange market mainly due to the underperforming Bitcoin. It is more than evident that the assets are not exhibiting much potential in a lot of areas.