Market Summary: Downhill slope
The “flash crash” of last week has come to a screeching halt. But not all the way it seems. If we look at the chart of Bitcoin from the last week, you can see price has fallen down to the upper $370 range to lower $380 range. From there we have had upward trends that have tried to break the $400 barrier, but none have been successful for too long. Besides that, Bitcoins market has been moving sideways with a slight decline, a recurring pattern over the last several months.
When it comes to supposedly explaining why this occurs, no major theories have surfaced. There is always the ever present downward pressure of freshly mined Bitcoins, but besides that, no bad news have been released so far.
Shortly after writing this however, Bitcoin has now fallen to below $350, signifying some seriously selling pressure. With volume at nearly $40 million, that’s quite a lot for one coin to handle, even Bitcoin.
An interesting market move made this week was courtesy of Ripple. Ripple increasing price and Litecoins decreasing price made it for briefly where ripple was 2nd cryptocurrency by market capitalization, trumping Litecoin.
As you can see by the chart, it quickly plateaued out and went to normal prices but seems to be on the rise again according to the 7 day graph on the right. Competition between 2nd and 3rd place cryptocurrencies is fierce, with only a less than 1 million difference between Ripple and Litecoin. Any moderate price increase for Ripple or moderate price decreases for Litecoin could change who is where in rankings.
Another interesting coin release this week was Nubits, which was hyped and alluded to via Peercoin communications channels. It promised to get rid of Volatility, with a 1:1 USD ratio.
And so far? I would say it’s doing fairly well. But the ties to the USD brings a very apparent problem already. Since according to coinmarketcap the total amount of Nubits will ever be 2,240,450 Nubits, it has no coin market capitalizations to increase on. Nubits should in theory, never stray that far away from $1, so it shouldn’t go to far below that, and it shouldn’t go to far above that.
The downward pressure from last week for cryptocurrencies haven’t stopped it seems. Cryptocurrencies aren’t the only thing down, with commodities such as Gold and even crude oil down as well. The only thing to is strategically trade, and ride the storm out.
Photo Source 1 : BitcoinCharts
Photo Source 2: CoinMarketCap