After adding more than $20 billion within a 30 minute period, the crypto market has declined in valuation, led by the 5 percent drop of ether and Bitcoin Cash.
Over the past 24 hours, the price of Bitcoin Cash, ether, Ripple, and EOS dropped by 4 to 6 percent, while bitcoin remained stable in the $7,300 region. Despite its Relative Strength Index (RSI) demonstrating overbought conditions, the price of bitcoin has not fallen by more than 1 percent since its mini bull run on July 18.
Earlier this week, Barry Silbert-managed Digital Currency Group’s Grayscale, a fund that oversees $2 billion in assets, has revealed that in the first half of 2018, it raised over $250 million from accredited investors, the most amount of money it ever raised in its crypto fund in a six-month period.
According to Business Insider, the report of Grayscale emphasized that institutions are more interested in the crypto market than in 2017, possibly due to the large drop in the price of major digital assets.
Throughout 2017, especially in the latter half of the year, investors emphasized the overly high value of cryptocurrencies, especially bitcoin and ether that achieved $20,000 and $1,500 respectively at their all-time highs.
Now that the market has fallen by more than 70 percent over the past seven months, the crypto market has started to see an influx of investors from the public market, as portrayed by the recent spike in the volume of bitcoin.
The daily trading volume of bitcoin and ether have risen to $5.6 billion and $2.25 billion respectively, up from $3.5 billion and $1.3 billion last week.
The short-term rally of major digital assets on July 18 was met with a minor drop on July 19, as most tokens alongside ether, Ripple, Bitcoin Cash, EOS, litecoin, IOTA, TRON, and NEO fell by relatively large margins.
Bitcoin Cash in specific dropped from $890 to $815, by nearly 10 percent since achieving a weekly high on July 18.
More to that, as Anthony Pompliano, a partner at Morgan Creek Digital Assets, said, the filing of a bitcoin ETF by Cboe, the launch of a crypto exchange by Japan’s second biggest bank SBI, Goldman Sachs clearing bitcoin futures for clients, and Andreessen Horowitz raising $300 million will contribute to the next rally of the cryptocurrency market, which may occur in the upcoming days if the volume of the market can be sustained.
While bitcoin prevented a downward movement to the $6,200 region, tokens like Aion, Loom, Power, and Waltonchain recorded losses in the 8 to 10 percent range, after recording large gains on July 19. The volume on tokens remain low on major crypto exchanges like Binance, signifying that investors are not ready to take high-risk and high-return trades in the crypto market just yet.
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Last modified: May 20, 2020 6:31 PM UTC