Is it different this time? According to bitcoin, ripple and Litecoin.
In case if someone is counting, it is the fifth time this year, when bitcoin, ripple and Litecoin and other cryptocurrencies are selling off again.
In this time there are couple of things different this time, one of them is that the selloff has begun after a two period of two months rather that after a short spike. That’s mainly the case of bitcoin, which has traded close to $6,500 since in early September, before jumping below $5,500.
There is another thing that the selloff is broke through at the $6,000 and $5,800 marks which has been seen a market ‘bottom’ for the digital currency, but for me $5,800 is a more important level as compare to $6,000.
The real bottom bitcoin last hit, says that clement Thibault, which is the senior analyst at the global financial platform investing.com, we have already seen that the bitcoin go back up to $6,000 and I will believe a full hopeless swing when I see it, we have not had one if these since the bitcoin began the trading between $6,000 to $7,000.
The cryptocurrency trader Abraham Merkin is already concerned about the spike in the trading volume escort the sell-off.
Volume is up as high as 85% on some of the exchanges and 20-25% is common even between mainstream exchanges. Henry James, the deputy CEO and chairman at the Fin cross International, is not surprised by the sell off, this comes after the long period of secure price action amongst bitcoin. Sudden volatility has not come with a surprise because Ether and other cryptocurrency and the breakout from this price range has been expected from the number of days.
The sell off suggests that the buyers are still hesitant at this stage and are in search of more real world use cases for cryptocurrency.
The process sell off and the current sell off has the similarities to the selloff of last January and it is very broad. In the last seven days, bitcoin is down to 12.10%, ripple is down to 15.94% and Litecoin is down to 18.32%.
It has been extending across the entire cryptocurrency list , and that list with 93 out of the top 100 cryptocurrencies losing ground, that means that the money is getting out of major cryptocurrencies is not been invested back into the other cryptocurrencies, and leaving the entire asset class.
That what happened back in January and we all know that what happened to cryptocurrencies after that.