The overall cryptocurrency market cap has been reduced by over $10 billion USD in a matter of a few hours. The fall which started at UTC 18:10 on August 18 continued for almost 5 hours, reducing some of the top cryptocurrencies by an average of 5%.
Surprisingly, the trading volumes have also reduced with the decrease in price of the tokens. Usually, the trading volumes would spike when the coin prices took a drop. But this time, it looks like the crypto community is expecting another price drop soon.
Nano (NANO), Vechain (VEN) and Ontology (ONT), in particular, have drawn the attention of crypto traders. The coins were the top gainers on August 17, with hikes in price between 30% to 70%. This had increased the coins’ trading volumes by several folds. However, the very next day, they were suddenly the worst performers, incurring losses between 15% to 20%.
Alex Kruger, a popular crypto market analyst, said,
“BTC was rejected at $6,600 and the whole crypto complex fell like a house of cards (10% – 20% this morning). A strong bounce out of massively oversold levels does not indicate a new bull run has started.”
He further said that the ‘illusion’ of the returning bullish market trends was caused due to strong oversold conditions in the crypto market. This is why traders involved in what is known as ‘High risk, High return’ type of trading, which apparently didn’t work out as expected.
At the time of writing, Bitcoin was down by 2%, which puts the Bitcoin price at $6412.3 USD. Most of the altcoins which are part of the top 20 coins by market cap suffered greater losses.
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