Most experienced cryptocurrencies traders think that trading on a Sunday is risky. The same can be said this Sunday, when the markets are going through another $19 billion drop in a 6-hour span. We are in the second largest Bitcoin (BTC) correction.
This is not a day of misfortune, but it should be remembered that Coinrail’s latest hacking operation eliminated $47 billion from the cryptocurrencies markets on a Sunday. According to CoinMarketCap this morning the total market capitalization was $257 billion. This figure fell to the recent lows of $238 billion. This represents a drop of 7.4%. As a result, market capitalization has stabilized at current levels of $241 billion.
As the leading cryptocurrency, Bitcoin (BTC) suffered directly from these falls. In the early hours of Sunday morning, he quoted around $6,150. It would then fall to $5,860 over a period of about 6 hours. This figure reflects a decrease of 4.7%.
All other cryptocurrencies were also affected by the fall in stocks this morning. In the last 24 hours, Ethereum (ETH) is now trading at $445, down 4.53%. Ripple (XRP) is down 5% and trading at $0.46. Bitcoin Cash (BCH) fell 8% and is currently trading at $691 per hour.
What Do Experts Say About Correction?
Late last month, veteran digital asset analyst Willy Woo predicted that Bitcoin would test levels between $5,500 and $5,700 before there were signs of recovery in the cryptocurrencies markets. He said:
I think we are gonna go to $5500-5700 next, I can't see $7000 holding. Most likely we'll balance a bit, then we'll slide through. Long timeframes here, looking into June for rough timing of this to play out at a best guess. /1 pic.twitter.com/pCN0N97vp6
— Willy Woo [no giveaways] (@woonomic) May 26, 2018
Woo has recently been explaining from his social media that there are currently four reasons why market prices are like this now:
- The Network Value to Transactions (NVT) signal is still too high for BTC. The market needs more transactional activity blockchain to justify the current price or the price to go down to reconcile the difference. Such transactional activity is highly unlikely in a bear market. Therefore, the BTC will continue to decline.
- Volatility is still too high.
- The standard NVT is high and will take longer to download.
- A cliff profile volume cliff below $6,800.
Another expert, Martin Wos, co-director of Block Stocks, also said recently:
“There have been several times in the history of Bitcoin where people have thought that general adoption had happened. However, the run-up to last December’s $20,000 rise saw Bitcoin reach some really big adoption milestones.”
Although traders still believe that the price of Bitcoin will likely suffer another correction before a short-term recovery occurs, several investors, including Peter Thiel and Alan Howard, have expressed optimism about the cryptocurrencies market. In the future, Bitcoin may reach new highs, even if you don’t know when. It could be more than a year from now.