The crypto market showed little movement and extremely low volatility over the past days and weeks. All the more surprising is the sudden drop in Bitcoin’s share price and almost the entire Altcoin market.
Some studies have shown that the volatility of the cryptographic market has reached its lowest value in the history of digital currencies. Over the last three weeks, the total market capitalization has moved in a seemingly deadlocked channel just around the 220 billion dollar mark.
In the last few hours, however, almost 10 billion dollars have flowed out of the market. Around 02:30 3 days ago, the prices of all crypto currencies fell and recorded an average price drop of between 5 and 10 percent.
The Bitcoin share price fell by more than 5 percent. The market leader was previously able to maintain the support level along the $6,500 mark for a long time. The rest of the market was also affected, with Ethereum losing 9 percent and falling to its lowest level since July 2017. XRP and IOTA also fell by almost 10 percent, following the downward spiral.
This pattern has often been repeated in the past weeks, so this price slide comes suddenly, but should not be overestimated. The trading volume has been extremely low lately and it seemed that the crypto market has calmed down and stabilized at a level from which a new rally can start.
There are currently large sell-outs in the Asian markets of South Korea and Japan, but it is too early to identify a clear reason for the current trend there. Many industry experts are trying to predict the next possible trend, but there is great disagreement as to whether the bottom has been reached.
The next hours and days will show in which direction the journey is going.