Thursday was a bad day for altcoins as almost $30 billion USD was knocked from the total crypto market capitalization.
Where Bitcoin Goes, Altcoins Follow
Crypto market capitalization was estimated to be around the $280 billion USD during midday trading yesterday; however, as Bitcoin suddenly took a near 10% hit today to drop below $10,000 USD share price, altcoins were largely forced to bear the brunt of the drop in confidence.
Ethereum, Ripple, and Litecoin, which make up the rest of the top five cryptocurrencies by market cap outside of Bitcoin and Bitcoin Cash, all took hits today, which amounted to nearly $20 billion USD in market value.
This reinforces a recurring trend that where Bitcoin goes, altcoins follow. It’s difficult to judge exactly what caused this dip in crypto shares due to the various external market factors, but some analysts have attributed the drop to a recovery in China’s Yuan currency, among other geopolitical issues. Stocks around the world have faltered this week, after Wall Street flashed a warning that the global economy could be headed towards recession.
Etherum, the second-largest cryptocurrency, fell to its lowest level in three months as its value plunged as much as 14% from $210 to just below $180. Ripple’s XRP, the next largest altcoin, fared no better as it slid to $0.256—its lowest valuation in almost a year. Litecoin, which had been one of the 2019’s better performers, fell back to around $75, meaning it has now essentially lost the majority of gains made in 2019.
What Next for Altcoin Investors?
The crypto market is notoriously volatile and equally hard to forecast, but it’s clear that this hasn’t been a good week for speculators amidst news of further regulatory uncertainty from the SEC and escalating crypto crime.