Update: As of Tuesday 18th July, the price of one Bitcoin in US dollars is $2280.99, in euros is €1978.87 and in British pounds is £1741.43. Is this the bottom for the crypto currencies?
Gravity has finally caught up with the cryptocurrency market as its market capitalization has fallen sharply to $70 billion, from above $110 billion just a few weeks ago, according to coinmarketcap. Is this the end of the correction or can the traders expect a further fall from the current levels?
Huge volatility ahead for bitcoin
On August 1, the world will know whether bitcoin remains as a single entity or splits into two. If there is no split, it will be a big sentiment booster and we can expect a sharp rally in the digital currency.
On the other hand, if there is a split, it is likely to be followed by huge volatility until the market settles the prices for each bitcoin. This may take anywhere from a day to a few days. Therefore, traders should stay away from trading on August 1.
Coinbase’s GDAX exchange has said in its blog post that it may “temporarily suspend the deposit and withdrawal of bitcoin on GDAX and may pause the trading of bitcoin as well,” on August 1.
It is difficult to predict the outcome; hence, it is best to wait for a few days till the dust settles down before trading bitcoin in August.
Flippening a distant dream now
Though bitcoin is the poster boy of cryptocurrency universe, many believed that ethereum will topple it as the leader. This event was termed as “Flippenning”. Ethereum did pose a threat when its market cap rose above 30% and bitcoin’s fell to 37%.
However, after reaching their respective highs on June 12, both the cryptocurrencies are in a sharp correction. In this fall, bitcoin has emerged as the winner, falling only about 35% from its highs, while ethereum has corrected close to 60%.
As a result, bitcoin currently has a market cap of $33 billion, whereas, ethereum’s market cap has shrunk to less than $16 billion.