A dark week is drawing to a close for the Kryptos. Bitcoin falls below the 200-day average and insecure investors are pulling their capital out of the market. The alternative assets are hit even harder. We take a look at the current market development.
Ethereum falls with a daily loss of just under 5% to a value of USD 215.46. This means that the support lines are dwindling before the important USD 200 mark. From a bearish perspective, the price could run up to the support line of $210 in the coming hours. As a result, a dump below the 100-day line at the 195 USD mark would not be unlikely. However, should the bulls take the reins, the next resistances will be at the USD 220, USD 225, and USD 240 levels. The 24-hour volume of just under USD 2 billion implies the high interest in the “smart contract” coin. Only Bitcoin is currently traded more frequently (approx. 34 billion USD)
Top 20 record losses
A glance at the top 30 presents a sobering picture for investors. Ripple is heading straight for a new annual low with a daily loss of about 3%, while Tezos (about – 9%) and Chainlink (about – 10%) are gradually losing the gains of the past weeks. It would be too early to speak of an “Altcoin bloodbath”. Volatility is back in the cryptospace industry and fluctuations in the double-digit percentage range are not unusual in this industry.
Bitcoin SV as an exception
Bitcoin SV is resisting the current market development and underlines this with a price increase of just under 6%. At the time of writing, the BSV-Coin is valued at USD 223 and has a market capitalization of approximately USD 4 billion.
Reasons for the decline
The coronavirus continues to spread and the traditional markets are suffering from this development. Canceled trade fairs, closed supermarkets Supermarkets and the uncertainty of citizens could weaken the real economy even more in the coming days. While the Down Jones Industrial, Dax and Co. has suffered heavy losses this week, Gold is experiencing a spectacular price rally and is living up to its reputation as a “safe haven”. Similar characteristics have also been attested to Bitcoin by countless experts. After the USA-Iran crisis and the first coronavirus reports, this forecast seemed to come true, but the current slide speaks against it.
Why do the Altcoins follow Bitcoin?
The main reason why so few Altcoins are able to differentiate themselves from Bitcoin is the high Bitcoin Dominance Index, which expresses the balance of power. This index is 64,2 % and all Altcoins share a market share of ‘only’ 35,8 %. The focus of the investors is therefore clearly on the No.1 crypto currency and the alternative assets are tied to the “digital gold”.