Bitcoin’s correction has had damning consequences on the rest of the cryptocurrencies on the market and the crypto world as a whole. Many of the altcoins have suffered double digit losses and there is a sea of red flashing across the market boards.
Following a high sell off the weekend, cryptocurrency markets suffered a $50 billion loss. This period was one of the most damaging periods for cryptocurrency markets this year. At the end of the week, crypto markets had a $320 billion capitalization and by Monday, the markets had lost $50 billion to go down to $270 billion.
The Bitcoin Effect
The downward spiral being experienced by cryptocurrency markets can be attributed to the effects of Bitcoin’s correction. After Bitcoin reached $13,000 and instantly began retreating, the markets responded by falling. Bitcoin went through a +25% correction that saw it trading back below $10,000 during the early trading hours in Asia.
After it’s correction Bitcoin recovered and traded above $10,000 and has since maintained a 66% high. However, the altcoins that suffered as a result of the correction have continued going downward. The markets have seen the complete disappearance of the gains that were made by altcoins during Bitcoin’s rally. Online crypto trading has been clearly affected by Bitcoin’s correction.
Altcoins Suffering Significant Losses
The majority of altcoins have closed at levels reminiscent of the crypto winter that was witnessed six months ago. Ethereum suffered a flash crash which sent it to $191. The second largest cryptocurrency has crashed from trading comfortably above $300 and currently, Ethereum is hanging precariously just above $200. Analysts have predicted that Ethereum is likely to tumble further down especially if Bitcoin regresses again. Over the weekend, Ethereum fell by close to twenty percent.
Similarly, the other altcoins on the market have also suffered losses. Ripple’s XRP suffered its own losses and it dropped by 4.5% to trade at $0.312. Litecoin also dropped despite the hype that had been created by its imminent halving event. The cryptocurrency fell back into trading in the double digits below the $90 mark.
Bitcoin Cash and Bitcoin SV were not spared from the onslaught as they both lost 15% to fall back to $280 and $120 respectively. Stellar, EOS and Binance Coin all dropped by 8% and Tether is making slow inroads on the market cap charts as they make more tokens. The drop across the board may have put traders in a position to buy altcoins in anticipation of a potential future rise.
Even the smaller altcoins down the market charts have suffered losses of various proportions. Tron, Monero, Dash, IOTA, Cardano, Chainlink, Cosmos, Ethereum Classic and NEO all suffered double digit dumps. It is expected that in the near future, the altcoins will continue to see red and more losses can be expected and this may affect those who want to buy cryptocurrencies. The signs of crypto winter are showing and many of the altcoins are likely to fall victim again.