Last Monday, the total market capital of crypto currencies fell by over 10%. A stocktaking.
Even if a high volatility belongs to the everyday life of the crypto currencies, a look at the own portfolio after work can sometimes leave you speechless. So yesterday happened, when the value fell by about 10%. A recovery is also today, on 11 July, not in sight.
Possible backgrounds of Bloody Monday
How can this fall in prices, especially by Ethereum, be explained? On Sunday, it was pointed out that Ethereum had left the Upward Channel and that the projects supported by ICOs are now apparently beginning to exchange the acquired money for Fiat. Although more ICOs are being promoted, there is currently no new Basic Attention Token on the horizon. This may change due to Mark Cuban’s planned participation in an ICO; even if there are some critical voices here, many who follow the investor’s words will also invest in this ICO in the sense of the acronym FOMO (Fear of Missing Out).
Any friend of Ethereum, however, must be aware that Ethereum is only used as an investment vehicle. This is not an application that does justice to the powerful Smart Contract plafform.
In addition to Ethereum, most other crypto currencies have also suffered price losses. Even Bitcoin has fallen here. Investors have apparently converted their profits and are currently converting from Bitcoin to Fiat. The upcoming protocol updates from Bitcoin, the concern for UASF and whether SegWeit 2X will work will create unrest in the market.
What should you do?
Prudence is the order of the day. Of course everyone is free to convert his profits into Fiat if he wants to do so. Nevertheless, such a fall in prices can always offer an opportunity to buy back. Accordingly, everyone should carefully rethink their fundamental investment assessment before buying or selling orders are made out of blind reaction. If necessary it can also help not to look constantly at its Portfolio.
A look at Coinmarketcap did the rest to shape the mood, as almost all crypto currencies were in free fall:
In addition to the potential candidate for our “new coins on the block” series, which currently occupies 10th place, it is noticeable that not only all crypto currencies have lost value, but almost all have lost more dramatically than Bitcoin. This led to a strengthening of Bitcoin’s market share, so that “The Flippening” currently seems a long way off:
Bitcoin’s market share is currently around 47%; Ethereum’s has dropped by around 10% in a month to 23%.
Disclaimer: The price estimates shown on this page do not represent recommendations to buy or sell. They are merely an analyst’s assessment.