Between November 7th and November 9th, a total of $6 billion has been wiped out of the market capitalization of cryptocurrencies. The valuation of this highly volatile market fell from $220 billion to $214 billion within this period. It’s important to note that the price of Bitcoin was stable the entire time. This is rather surprising since Bitcoin typically fuels these movements.
What Happened To The Cryptocurrency Market?
On the 6th of November all the major cryptocurrencies starting from Bitcoin recorded significant gains from a range of 5% to 40%. Bitcoin Cash recorded the most significant gains rising by up to 40% within two days. As expected, the spike in value was followed by a downward correction that took a total of $6 billion out of the total valuation of cryptocurrencies.
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Bitcoin (BTC) Price Today – BTC / USD
While this might look like a huge lose, the market is still doing relatively well on a monthly basis. Stats show that the cryptocurrency market has gained up to $16 billion within a 30 day period rising from $198 to $214 billion. The significant lose was a result of a fall in the price of Bitcoin Cash and other coins with small market capitalization. You’ll recall that there was a surge in the price of Bitcoin Cash which was linked to the network spilt. This was followed by a drop in price.
The $6 billion that was wiped off is equivalent to a 2.7% fall in price. However, the trading volume of major cryptocurrencies is still high. In October, BTC was hovering around $3.2 billion trading volume. In November, the daily volume has been above the $4.5 billion level. This shows that the daily volume is up by 40% within three weeks. The surge in trading volume is most likely due to the general positive sentiment in the market.
Bakkt Bitcoin futures market acted as a catalyst that reignited the trust of investors in the market. Since Bakkt offers BTC to future contract holders, an inflow of institutional investors will most likely cause a bull run. Unfortunately, tokens aren’t enjoying the same positive sentiment right now. The dispute between EtherDelta and the united States SEC has made investors wary of tokens. For more information about this, read this post by smartereum.com.