Just before lunch on Wednesday, the crypto market looked like a bear’s den, with all ten of the top cryptos by market capitalization having bled more than 5%.
The exception of Tether (USDT) is easily explained as the token has a fiduciary responsibility to remain pegged to the US dollar, and thus its fluctuations would only be notable if its volume had significantly increased. That said volume has not increased, however, is also noteworthy – the money seems to be disappearing, heading for who-knows-where.
In fact, Tether took a 24-hour loss in market size of at least $100 million, meaning that a good deal of the capital fleeing various cryptocurrencies was not only not heading into Tether USDT, it was leaving the market altogether.
USD Coin added a few million units to its reserves, but nothing near what Tether has apparently lost.
Similarly, Gemini Dollar seemed to have some buy pressure, but nothing insane:
Thus, with no tokens or coins having breakout record price surges, and the majors all plunging, it seems all this money is actually heading for the door.
Surprising as it may be to some readers today, the only winner has been Bitcoin Cash SV, which was previously trading under $100 but was at one point trading over $200 on Poloniex, one of the few exchanges engaging in with it the day before the scheduled Bitcoin Cash hard fork.
Time of writing prices on SV looked like this at Polo and HitBTC:
While trading at Bitfinex seemed to be going swimmingly, with a 24-hour high for the BSVUSD futures market hitting nearly $250.
This particular bear assault seems to be on the market as a whole, as the price fluctuations in Bitcoin Cash SV actually correspond to the losses in Bitcoin Cash ABC, meaning that they can be seen as more of an “economic vote” than a market performance metric. Only once both chains are independently operating will we have sure metrics which we can use to analyze the factors of both Bitcoin Cash prices.
It is unclear at this time what is driving the marked downturn across the crypto market, which presently has dipped under $200 billion as a whole. However, CCN.com and Hacked.com analysts are hard at work researching potential answers and strategies, so stay tuned.
Featured image from Shutterstock.