The valuation of the entire cryptocurrency market has declined to $253 billion, down $100 billion over the past week. The price of most major cryptocurrencies including bitcoin, Ethereum, Ripple, and Bitcoin Cash dropped by more than 13 percent throughout March 30.
Over the past 24 hours, the price of bitcoin dropped from $7,900 to $6,600, recording a 12.6 percent decline in value. Ethereum, Ripple, and Bitcoin Cash all declined by more than 12 percent, as the market lost over $40 billion within a two-day span.
Both bitcoin and the cryptocurrency market have not seen these levels since early February, when the price of bitcoin dipped to $6,000. After reaching its bottom at $6,000, the price of bitcoin spiked to $12,000, reaching $14,000 in regions with substantial premiums, including South Korea and Hong Kong.
Although bitcoin has shown some resistance at the $6,600 mark, it has also demonstrated minimal signs of recovery. Volumes on most exchanges including Binance, Bitfinex, Bithumb, Bitflyer, and Upbit remain relatively low, but the volumes on futures markets are intensifying, as previously reported.
Several analysts including Wall Street-based Fundstrat’s Tom Lee have stated that bitcoin is still on track to end the year at $20,000, especially if the market can initiate a mid-term recovery within the upcoming months.
Abra CEO Bill Barhydt stated that while the demand towards the cryptocurrency market has been non-existent from institutional investors and retailer traders in the west, that certainly has not been the case in Asia.
Given the lack of volumes, it is likely that the cryptocurrency market could continue to fall in the next few days. However, if bitcoin fails to sustain its volumes and the price of the most dominant cryptocurrency in the market falls below the $6,000 mark, it could lead the market to another bear cycle.
Barhydt stated that hedge funds, institutional investors, and investment firms are still actively looking into the cryptocurrency market, and exploring ways to enter the market. He emphasized that hedge funds will likely see a window of opportunity to enter into the cryptocurrency market when the market stabilizes and extreme volatility of bitcoin and other major digital currencies subside.
“I talk to hedge funds, high net worth individuals, even commodity speculators. They look at the volatility in the crypto markets and they see it as a huge opportunity.”
At press time, prices are hovering around $7000, while biggest altcoin Ethereum (ETH) has failed to maintain prices above $400 – representing a 55% monthly loss.
Bitcoin markets came under additional pressure March 30 after Mailchimp announced it was shutting down cryptocurrency-related accounts.
As multiple factors take the blame for the broad negative sentiment, chief among which is the likelihood of an incoming trade war following US tariffs, commentators are struggling to find reasons for upside.