The bitcoin price crashed below $300 on October 5. Although it has since climbed back above the $300 mark, the bitcoin price has fallen 6% in the past 24 hours. Because altcoin prices are coupled to the bitcoin price, most altcoin market caps have fallen…
Also Read: Analysis: Bitcoin Price Crash Below $300 – How Much Lower?
As the CoinMarketCap chart below demonstrates, altcoins have taken a huge hit over the past day. The bitcoin price decline caused nearly every altcoin market cap to fall by default. Additionally, many altcoin prices fell as investors bought back into bitcoin or panic sold their holdings for USD.
The Litecoin price fell more than 7%, reducing its market cap from ~$127 million to ~$119.5 million. The Dogecoin price fell 9.84%, which dropped its market cap $5 million. Twelfth-ranked BitcoinDark fell almost 18%, making it the highest-ranked altcoin to see double-digit percentage drops over the past day. BitcoinDark’s price decimation is joined by several other prominent altcoins, including Monero, Mastercoin, and Blackcoin.
However, a few altcoins did experience price increases. Bitshares PTS and Counterparty, the tenth and eleventh-ranked altcoins, experienced 8% and 3% price increases, respectively. Several smaller altcoins saw surprising price spikes. The Feathercoin price rose 26%, and Monacoin’s price increased 55%.
Nevertheless, most altcoin prices and market caps declined significantly.
Sunday’s altcoin price crash highlights why altcoin investments carry so much more risk than bitcoin investments, which themselves are quite risky. At present, virtually every altcoin price is coupled to the bitcoin price because there are few direct USD/altcoin markets and most traders buy and sell their altcoins with bitcoins. Consequently, altcoin investors do not just have to worry about their coin’s stance among other altcoins; they also have to worry about how the state of the bitcoin price alters the value of their investment. Investors should keep this in mind as they plan their present and future trades.
Disclosure: The author is paid in and holds investments in bitcoin. He is not invested in or affiliated with any of the altcoins discussed in this article. Any advice contained in this article is solely the opinion of the author and does not reflect the views of CCN. Neither the author nor CCN is liable for your investing decisions, so do your homework and never invest more than you are willing to lose.
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Last modified: February 13, 2020 3:40 PM UTC