The crypto market has faced a lot of downward pressure the past few weeks and, as we reported yesterday, so is everything else. Indeed, the week saw an overall 3+% loss in the Dow Jones Industrial Average, and no other exchanges were performing well, either. It’s just a bad time to be a bull, it seems.
Bitcoin Price Languishes Near Yearly Low as BSV Rallies
The Bitcoin price is a long way from the heady days of a year ago when a single coin would buy a modest new car, and Bitcoin by itself now accounts for a full 54% of all the money invested in cryptocurrency as a whole. This is why the typical case is that when Bitcoin is taking big losses, so are the rest. This is not just because so many cryptos are only liquidated through BTC before getting to fiat currencies, but also because when bears attack the Bitcoin markets, they simultaneously assault associated altcoin markets.
Those clever bears are eating well these days, that much we know. At least a couple of situations would have been hard to predict a couple months ago:
- Bitcoin SV overtaking Bitcoin ABC, or lasting as a viable product at all.
- The Bitcoin price failing to rebound above $4,000.
Either of these situations could make millionaires and paupers depending on how trades were positioned. Those betting long on Bitcoin SV are surely pleased with themselves, while those who were confident it was to be a loser against Bitcoin ABC and other cryptos, destined for the bottom of the barrel, are hopefully reassessing their analysis skills.
Crypto Market Faces Sub-$100 Billion Drop
The crypto market as a whole is hovering just above $100 billion, down from its heady half-trillion-dollar and up heyday. Today it’s lost and added several billion dollars, on paper anyway, resting at time of writing around $109 billion. Bitcoin only needs to lose a few hundred dollars per unit for the market to go sub-$100 billion. Where the money goes, nobody knows, but there’s a psychological boundary at round figures like $100 billion, and it could be a long road back to a bull run if such an event occurs.
One thing that is certainly not stagnant in the industry is innovation. Dozens of projects continue to launch and see traction across the blockchain space. As long as this is the case, the tokens that power such blockchains will have some demand and inherent value.
Out in the Ether
Ethereum continues to flirt with the $100 mark and had only barely gone beneath it at time of writing, perhaps creating a large buy opportunity for start-ups that will be issuing tokens, or investors looking to get into ICOs in the coming months.
It is not out of line or even speculative to say that several future millionaires are probably in the acquisition phase of Bitcoin, while smart and seasoned traders are trying to time their buys just right to seize the maximum possible discount.
Ethereum Alternative EOS Takes A Hit
As such, a discount on EOS, which has seen some interesting venture capital-funded projects in recent times, is probably of interest to various types of investors and confident traders. It lost around 50 cents USD in the past day, but like all cryptos has in the past seen prices more than twice this.
Bitcoin SV Playing In The Outfield
The underdog Bitcoin SV is still in a price discovery phase, but as yet we’ve seen that traders are still treating it close to equivalent as Bitcoin ABC (or Bitcoin Cash). It stumbled a bit today but could be in a run-up to race past Bitcoin ABC.
The author’s not a trading expert, but these observations are based on experience. Bitcoin SV, in particular, is either headed for greatness or headed for Litecoin-like prices. Several factors play into this, and currently, all of its price action can rightly be attributed to speculators as opposed to organic demand for services, as it is still developing its ecosystem. However, development of its ecosystem seems to be concerted and realistic, and thus such organic demand as a future reality is entirely possible.
Featured Image from Shutterstock. Charts from TradingView.