Bitcoin falls below US$4,700, down 17.5% in a day; Other cryptocurrencies follow suit

Bitcoin, and other cryptocurrencies are caught in a drag, as investors are turning risk averse in a market which is uncertain, amid ongoing trade wars and geopolitical issues.

IG Analyst

Publication date : 2018-11-20T06:24:00+0000

The downwards slide continues as investors are exiting from riskier assets and products as investors are getting more risk averse in a macro environment filled with trade wars and geopolitical issues that don't seem to end. On Tuesday, as of 5.30am UTC, Bitcoin, the top traded cryptocurrency and number one in market capital saw a sharp selloff in under 24 hours, plunging lower by 17.58% to US$4,695.97.

This brings a total circulating supply for Bitcoin at 17.38 million, and a total market capital value of US$81.64 billion, according to crypto comparison and valuation website CoinMarketCap.

The losses extended from Monday, with Bitcoin failing to find a support at US$5,600. The tumble caused by Bitcoin also dragged other cryptocurrencies’ prices to fall lower.

The rout had began last Wednesday where Bitcoin was trading at US$6,386.73 at around 7.00pm UTC, before making a sudden plunge to US$6,268.78 at 2.00pm UTC the next day and shedding 13.78% in under 7 hours to US$5,574.30 at 9.00pm UTC on Thursday.

Volatility ensued for the next couple of days which saw the psychological barrier of US$5,500.00 threatened, only to have Bitcoin giving up in the end to pull below that level to US$5,483.67 on Monday at 6.00am UTC.

Year-to-date, the crypto has fallen from a peak of US$17,462.10 on January 6 and is now 271.85% lower than the year’s peak price.

CoinMarketCap data

Alternative coins, Ethereum, Litecoin, also caught in the drag

Most cryptocurrencies also suffered a beating on Tuesday, with cryptos such as Ethereum down by 15.63% at US$145.94, and Litecoin down by 13.50% at US$36.25, as of 1.30am UTC.

A day ago, Ethereum was at US$168.75, while Litecoin was at US$40.53.

Altcoins such as EOS, Monero, and Tron, have also seen their prices fall between 8.00% and 17.00% in a day.

Tough times for crypto market

It is unlikely for Bitcoin to return to its all-time high of US$19,783.06 which occurred on December 17, 2017.

Experts say it may be possible for Bitcoin to soon find its bottom. Some think that the cryptocurrency space is facing a crisis as investors are becoming risk averse and losing confidence in crypto's value proposition.

The ongoing trade war between the United States and China is not helping to make the macro environment calm either. The deadline looming for Britain's exit from the European Union also adds to market uncertainty among investors.

Crypto mining products are facing lesser demand while crypto businesses are said to be having sluggish sales. Taiwanese manufacturers such as Asus and Gigabyte are said to be struggling to unload excess mining hardware stock, according to DigiTimes in a recent report, and sales have taken a drastic dip from a year ago.

Bitcoin falls below US$4,700, down 17.5% in a day; Other cryptocurrencies follow suit

Alternative coins, Ethereum, Litecoin, also caught in the drag

Tough times for crypto market

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