Crypto-Markets Drop Significantly Because of Bearish Sentiment Ensues
Cryptocurrency markets have lost considerable value since our last markets update three days ago. The whole digital currency economy of roughly 1900+ assets has lost $35B since then, and a great majority of cryptocurrencies during the last 24 hours are in the red seeing significant losses.
Crypto-Markets Drop Significantly
Just when cryptocurrency fans thought things were getting better and many digital assets started slowly moving back up, digital asset prices plunged during the early morning trading sessions on September 5. For example, BTC values slipped from the $7,400 range at 5 am EDT, to the $6,900 area until 5:30 pm. Then again BTC prices slid another leg down to a low of $6250 around 11 pm, but values have since increased back to the $6,400-6,500 area. BCH markets on September 5, from 12-to-5 am were seeing BCH prices coast along at $630 per coin, but dipped to $560 at 7 am. Following this, BCH dived even further as prices had dropped below the $500 zone and the price right now at the time of publication is $517 per BCH.
The top cryptocurrencies have followed a similar path and most digital assets are down between 8-14% in just one day. Some virtual currency markets are down as low as 20% during last week. ETH markets on Bitfinex had a serious flash sale as 60,000 ETH were dumped during yesterday morning’s early trading sessions. A half an hour later another 70,000 ETH were exchanged on the trading platform. This decline has pushed the price of ETH down 20% as it now hovers at around $225 per coin. No one is quite sure what happened yesterday, and some suspect an ethereum-based ICO might have cashed out. Then there are the curious losses BCH, BTC, and all the other coins that suffered too. Some skeptics blamed the Goldman Sachs decision to put off its cryptocurrency trading desk, which seemed a bit outlandish to most traders.
Bitcoin Cash BCH Market Action
As we mentioned above, the price of BCH is trading at $517 per BCH, and markets are seeing some buying action after the oversold conditions set in. BCH markets are down 8.6% during last 24-hours and 2.9% during last week. The market valuation right now is $8.8B and trading markets have been swapping around $528M during last day. The top exchanges swapping the most BCH include Lbank, Okex, Coinex, Binance, and Bitforex. The biggest currency pair today traded for BCH is USDT with 43% of the BCH market share. This is followed by BTC (27.5%), USD (13.1%), ETH (9%), and QC (2.2%). BCH is the 5th largest cryptocurrency by trade volume today above LTC and below EOS.
Bitcoin Core Market Action
BTC prices are hovering around $6,494 per coin at the time of publication with a market valuation of around $112.4B. 24-hour trade volume is about $6.24B on September 6, and digital asset volumes across the board have all seen an increase. BTC is the top cryptocurrency by volume during last day, and BTC is down 7.4% during last 24 hours. The top trading platforms with the most BTC volume include Bitflyer, Bitfinex, Binance, Bitmart, and Coinbase Pro. The dominant pair traded with BTC is USDT which captures 42% of trades. The following top four pairs with BTC include USD (33%), JPY (11.4%), EUR (5.3%), and KRW (2.8%).
All Eyes on Short Positions and the Silk Road Stash
Since our last report, we discussed the rise of BTC/USD shorts stacking up and coming close to the high of 40,000 shorts. Well, since bullish signals never came to fruition, shorts have continued to rise exponentially and there are now BTC/USD 38,700+ short positions today. ETH shorts are reaching all-time highs as well, and even at a $225 price per ETH bears are betting heavily against the cryptocurrency.
The verdict today is of course far less positive than our last market’s update 3 days ago, and traders are much more skeptical. On social media, telegram channels, and Reddit forums most traders do not believe this dump had anything to do with some silly decision Goldman Sachs made. Further, many traders are wondering about the Silk Road coins that have been on the move and if they will be exchanged on the market like the last ETH flash sale.
Coincidentally, traditional currency markets, specifically the USD is showing a lot of strength against a wide variety of nation state-issued currencies. Moreover, most commodities like precious metals and oil markets have been incredibly bearish during last 30-days. But during last 24 hours, the USD strength has grown softer and spot gold and cryptocurrency markets could rebound in the short term.