Market Summary: Rollercoaster
Yet another wild week for cryptocurrency, there are just something’s that you never get used to. For example, Bitcoin dropped dramatically from around $480 to just under $400, and stayed there for a day or two. It soon bounced back up to $430, but that uptrend didn’t last long, with market going sideways, if not slightly downwards. Most of the top coins are going downward, with the main exception being Dogecoin.
Many people point to Alibabas IPO for being the prime suspect of why Bitcoin has dropped in price. The main theory is that with the announcement of Alibabs IPO, many Bitcoin holders liquidated their BTC into cash in order to invest in the IPO.
If you’re not familiar with Alibaba, they are huge in China. Especially in the e-commernce side of things, Alibaba is a group of investors that hold into Bitcoin. The general idea is that many people wanted to get into the IPO to make a quick buck, and quickly liquidated their cryptocurrency for cash. The Chinese exchanges especially with BTC China getting a 10000 BTC increase in volume, and exchanges like Bitstamp also gaining a massive increase of volume as well.
After the price stopped declining at around the $400 mark, it did rise up quite dramatically to $430, when Paypal announced the partnership with several Bitcoin companies such as Coinbase. But that didn’t last very long, and now prices are yet again declining with prices around $411 at time of writing.
Primecoin has also been doing quite well over the last month or so, I’d consider primecoin the dark horse of the pack. I haven’t seen much publicity or promotion regarding Primecoin, and it certinaly has been going on for a while, so I believe its safe to say the growth Primecoin is receiving is organic, and not some short-term market manipulation.
Dogecoin, after its quick surge after auxPOW got announced was thought to be dead. In fact just the opposite. After a period of slumps, Dogecoin retained some of its value, and has in fact been on a very nice upward market trend, surprising many people. While it’s still currently on a nice upward trend, I feel that this can’t last forever. I’d recommend treading carefully when it comes to trading with Dogecoin.
In summary, most coins haven’t being doing so hot. This is completely normal, with Bitcoin coming down the network effect is applying and other coins are coming down market wise subsequently. Its normally a good thing to do the opposite of what the market is doing, so buying right now would be a good option.
Photo 1: BitcoinCharts
Photo 2&3: CoinMarketCap