BTC dipping around 500 USD in a few hours
Bitcoin has to leave the five-digit range again after a few hours and falls below the important USD 10000 mark. Due to the pullback, most Altcoin also start the new week with price losses. But there are exceptions. We take a look at the current developments.
Bitcoin price in detail
After jumping over the magic 10000 USD limit, the Bitcoin now oscillates in the range between 9800 USD and 9900 USD. The market cap is just under USD 179 billion. This means that 63.5 % of the total market capitalization is in Bitcoin investments. In the next few hours it depends on whether the support range holds at 9800 USD. If dip below this level, the No.1 crypto currency would reach the support line at around USD 9600.
Most Altcoins rates are falling
Ethereum (approx. – 4 %), Ripple (approx. – 4 %), Litecoin (approx. – 5 %) and Co. follow Bitcoin on Monday. However, the price losses have so far remained within reasonable bounds, if one takes a look at the enormous profits of the past week. The investors have not written off the Altcoins by a long way. This is evident from the falling BTC Dominance Index.
Exceptions still confirm the rule today. Not all old coins can be carried away by “digital gold”. Tezos (ca + 10 %) continues the strong performance of the weekend and defends the 10th place in the cryptocharts. The in-house stock exchange coins BNB (approx. + 9 %) and Houbi Token (approx. + 19 %) also recorded considerable price gains.
Volatility is back
The volatility has been back in Kryptospace for weeks. Again and again the term is used in connection with the wild price fluctuations on the crypto stock exchanges. Volatility is derived from the Latin word “volatilis” and means something like “flying” or “volatile”. In economics, the term refers to the standard deviation of changes and is often used as a tool to determine the measure of risk. In cryptospace, volatility is used as an important measure of how the value of a coin changes over time. In theory, a distinction is made between absolute change, relative change and logarithmic change. All three methods are used depending on the circumstances.
Effect on Altcoins
In January 2018 many crypto currencies reached their all-time high. Within two weeks the Bitcoin dominance shifted from over 60% to about 30%. The volatility of the Altcoins seemed to know no bounds. Daily price fluctuations of 50 % were no longer a rarity and many traders secured enormous profits. Assets that are not in the top 30 generally fluctuate more enormously than the known coins. This is due to the smaller market capitalization. In addition, smaller Altcoins are often targeted by “Pump and Dumb” groups, as the prices are easier to influence. The current development indicates such a tendency. Although the BTC Dominance Index remains at a high level, this situation can change quickly. A good example is the KickToken, whose price has quadrupled in recent weeks.