Tuesday, August 14, 2018

Bitcoin loses $6000 handle while entire cryptocurrency market cap falls below $200 billion

At the beginning of the year, the cryptocurrency market was quickly heading towards $1 trillion as the entire sector experienced the benefits of the Bitcoin phenomenon.  Yet even as the O.G. of crypto's fell back below $6000 for a short spell on Aug. 14, the market cap for all cryptocurrencies fell below $200 billion for the first time in over a year.

Bloomberg reports that the total market capitalization of virtual currencies dropped to $193 billion
“The big story in the market today is the huge weakness in Ethereum,” Timothy Tam, chief executive officer of CoinFi, a cryptocurrency data analysis company, said in a phone interview. “Bitcoin has held up relatively well versus Ethereum. It’s still quite weak versus the U.S. dollar.” 
“Most cryptocurrencies have been overvalued for a very long time,” said Samson Mow, chief strategy officer at blockchain developer Blockstream Corp. 
“It’s hard to pin this move on any particular factor, but it feels like the opposite of last year when money piled in as people felt FOMO. Now it’s piling out as they sense panic.” - Zerohedge
For the very same reasons that gold and silver have experienced a decline for most of 2018, cryptocurrency investors are simply following the trend of momentum buying, which means that investing in assets only occurs when prices are going up, rather than investing in undervalued assets that are depressed despite good fundamentals. 


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