The reasons for the collapse of the cryptocurrency market

The reasons for the collapse of the cryptocurrency market

The price of bitcoin (BTC) fell below the support level of 7,000 dollars at the end of the day on 7 August, today, August 8, the price fell to a low not seen since mid-July. Moreover, negative dynamics is shown 99 of the top 100 cryptocurrencies according to CoinMarketCap.

At the time of publication of this article, BTC was trading around the district 6273 USD. The fall over the past day amounted to almost 12%, it is practically eliminated all the achievements of the cryptocurrency number one for the last 3 weeks.

A fall below $ 7,000 means a return to price level until July 17, when the price almost the day increased by $ 1,000.

A definitive explanation of this growth was not, but the price continued to rise and at the peak (in two weeks) reached 8450 dollars.

In August, despite a positive news background, the market began to fall, and bitcoin over the last seven days had lost more than 15%.

The last low was followed just a few hours after the US Central Bank announced that it was postponing a decision on bitcoin ETF from VanEck, and SolidX, which were traded on the Chicago Board of exchange CBOE.

This, according to many experts, and caused a sharp drop in prices. Although not all think so, for example, the former CEO of Morgan Stanley’s Caitlin long, argues that the fall in the price of bitcoin is leading the growth in the number of products on the basis of that asset.

See also – Commission, US securities and exchange Commission has deferred a decision on bitcoin ETF (CBOE)

This week altcoins also suffered heavy losses. Ethereum (ETH) fell almost 13%, while the monthly decline was about 35 percent.

ETH is trading around US $ 350. Last time, the price of the cryptocurrency fell to this level in early April.

Of the top 10 cryptocurrencies IOTA (MIOTA) and EOS were lower than the rest – fell by more than 22%. To levels of 0.62 and $ 5.49, respectively.

The price of Ripple (XRP) is down by nearly 20% and is trading at 0.32$.

The total cryptocurrency market capitalization currently stands at about 221 billion U.S. dollars. The last time such figures were observed in November 2017.

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