Top 10 Currencies all Lose Value

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Most people are well aware of how cryptocurrency volatility is a big problem. Although there are periods during which volatility seemingly quiets down, this week has been filled with wild price fluctuations. As of right now, all currencies and assets in the top 10 are bleeding value once again. IOTA, NEM, and Ethereum are the biggest “losers” of the lot, by the look of things.

ANOTHER DAY OF RED CANDLES FOR CRYPTOCURRENCY TRADERS

People who speculate on the value of individual cryptocurrencies have hopefully opened a few short positions. All major currencies are going down in value as we speak, which is rather surprising. In fact, Bitcoin is the only currency holding its own, with “just” a 1.3% dip. Other currencies are not faring all that well, with IOTA recording the largest losses at -11.42%. NEM – at negative 6.18% – and Ethereum – at negative 5.51% – are not doing all that great either.

One could argue market volatility has returned in full swing ever since the total cryptocurrency market cap surpassed the US$100bn mark. Since that time, we have seen multiple sharp dips, followed by recovery, followed by another dip. It is evident this US$100bn mark is a psychological threshold for a lot of traders and speculators, albeit it is anybody’s guess what the real story is.

When Bitcoin drops in value, all major altcoins will do the same. However, they are not doing so in an equal manner, as Bitcoin is the one currency with the smallest losses over the past 24 hours. It is well worth noting how Dash is the only other currency keeping pace with Bitcoin, despite its 1.46% dip. No other currencies keep losses minimized to 2% or less as of right now, which is rather surprising. It is possible a lot of altcoins are being exchanged back to Bitcoin, yet the timing doesn’t make much sense.

One thing people should pay more attention to is how Ethereum Classic is declining far less in value compared to Ethereum. Granted, Ether is far more “valuable” in US Dollars compared to ETC right now, but one would expect both of them to go down in equal fashion. That is not the case, as ETC lost 2.04% in value, compared to Ether’s 5.51% loss. An interesting trend, although it doesn’t have to mean all that much right now.

What is rather disconcerting to see is how IOTA seems to be taking a lot of hits in the value department lately. The token started trading on major exchanges not too long ago and was instantly catapulted in the top ten. Maintaining that position is a big challenge, as its market cap has dipped well below US$1bn in quick succession. Depending on how the markets evolve, that market cap may very well drop out of the 10 in the weeks to come.

Last but not least, the overall cryptocurrency trading volume has also taken a nosedive. Right now, this volume sits at well below US$2.5bn in the past 24 hours. Such numbers are to be expected during a weekend, but not necessarily during the week. It is possible we see a small pullback before the next major bull run. However, it is also possible future corrections are coming thanks to some currencies being way overbought in recent weeks. Only two currencies have a market cap of over US$10bn right now, which is very peculiar.

Image via themerkle

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