In the past 24 hours, ETH, XRP, and BCH have gone down by 12 to 13%. The Bitcoin showed a sudden decline in price at 4% in just 30 minutes.
Yuji Nakamura, a technology-based journalist states that “The drop in the price of Bitcoin in the past 24 hours has been triggered by the traders from Japan and South Korea.” He further added that the “Japanese are leading the move to a lower price point because they are selling the crypto to pay for unexpected and big margin calls in stocks.”
The 4% decline in just 30 minutes is the steepest of the short-term drops in the recent months. The downfall of Bitcoin was followed by the decline in the price of other major cryptocurrencies like ETH, XRP, and BCH.
It is further expected that the price of major cryptocurrencies and tokens will trend down in the coming months.
Of note, CCN reported on October 07, 2018 that the volume of XRP, the third most valuable cryptocurrency in the global market has gone down by 50% in just 48 hours.
There is a decline in the risk appetite of the investors. The report implied, “The 50 percent decline in the Ripple volume and the lack of momentum of the different tokens is showing that investors are not willing to take a high risk by investing in high return trades during the period of uncertainty.”
While it is true that Ripple had a successful September and October by major partnerships with financial institutions like Banco Santander, the decline in the XRP volume on October 11, 2018, recorded a 13% further decline in the value of the XRP.
On October 11, 2018, Bitcoin Cash that showed a strong momentum above the $500 mark showed a loss of $12% at $450.
The worse performing cryptocurrencies of the day are Wanchain, Tron, Ripple, Nano, Theta token, Walton Chain and NEM. All of these currencies went down by 13%.
It is now questionable if Bitcoin will hold up to the $6000 mark. To maintain momentum, BTC should hold up the major support levels. For as long as BTC holds the major support level, the dominant cryptocurrency might not plunge to the next major decline in the $5000 region.
While it is possible for BTC to sustain the plunge towards recovery, it is questionable if the cryptocurrencies with the low trading volume will be able to see a positive price development.
Bullish investors, however, are of the opinion that this is the best time to buy when the prices plunge down. Though the crackdown of regulation is tough, seasoned investors are able to accept that this is the way risk fueled markets usually trend. They see nothing unusual about it.
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