24 Sep Cryptocurrency market loses $15.4 billion in one day. What next?
The cryptocurrency recovery was short-lived as the market capitalization of digital currencies shed more than $15.4 billion in Monday trading.
Market cap dropped across the board with the biggest losers including Ripple (-18.13%), MonaCoin (-13.87), Siacoin (-12.32%), Status (-11.4%), Stellar (-11.24%) and Cardano (-11.2%).
Bitcoin bounced lower
Bitcoin dropped 3.3%, trading as low as $6,471 and giving up some hard won gains in the past several days.
Market watchers who had hoped for a sustained recovery were unsure of what direction markets were going to move next.
Market directions? Depends.
We gathered a range of opinions from market experts and industry leaders to provide more context for and insight for this roller coaster market.
“This [blockchain] technology is valuable because it has huge potential utility, offering productivity gains far above current systems. The full realization of those gains isn’t here yet, but it’s coming. While the market may rise and fall on a day to day basis, we’re in this for the long haul because we see where the trend lines eventually take us,” said Mick Hagen, CEO of Mainframe.
Donnie Bullers, North American Representative, Elastos said, “It is widely known that the cryptocurrency market is exceptionally volatile with many upward and downward movements. The most appropriate time for individuals investing in these speculative markets to build on their holdings is during bear runs, without worry of the market dips, because history supports an inevitable price trend back to bull. Investments should be made with long term ideals — follow the lead of many greats before and accumulate during times of market turmoil because it will be very beneficial in the future.”
Weiss Crypto Rating is maintaining it’s cautious C+ rating on bitcoin citing it’s weak investment reward potential:
“Despite rapid price appreciation in 2017, Bitcoin investors have almost invariably lost money in 2018. Even though it’s been one of the more stable investments this year, it’s still a far cry from more established financial assets.”
Fundstrat CEO Tom Lee is still optimistic for a near term altcoin recovery, writing in his most recent newsletter “The combination of cautious sentiment, incrementally positive development (Korea regulators, Bakkt etc) are catalysts. Bitcoin has held $6,000 multiple times this year and represents breakeven mining costs. Couple with this the probability of a mini alt-coin season, the near term outlook appears positive.”
Our forecast? Stormy weather. Volatility. Hang on tight and consult your most trusted advisors.