Volatility returns to cryptocurrency markets as prices slide
After several days of modest moves and low volatility, the cryptocurrency market turned sharply lower on Thursday, erasing much of the confidence that was beginning to build.
The sell off in Ripple resumed despite the launch, earlier this month, of its much-hyped xRapid payments platform into commercial operation.
Traders said the price move was a classic “buy the rumour, sell the fact” reaction, after strong price gains were recorded in anticipation of the product’s launch several weeks ago.
“As it often happens, the news was overhyped, the coin was overpriced, while traders were overexcited,” said FXStreet’s Tanya Abrosimova.
Just a few days ago bitcoin hit a 17-month volatility low. Many suspected that previous volatile actions was either the action of trading bots, designed to manipulate the market, or trading whales who buy or sell large orders that can move the price.
Blockchain research company Chainalysis, however, refutes such claims saying that only a third of bitcoin whales are active traders.
“While these trading whales certainly have the capability of executing transactions large enough to move the market, they have, on net, traded against the herd, buying on price declines,” Chainalysis said.
Price round up
Nevertheless, prices droppped sharply on Thursday. Here’s a round up of the moves of the top 10 cryptocurrencies by market cap at 11.30am [London time]:
- Bitcoin -4.5% at $6,287
- Ethereum -12.8% at $199.95
- Ripple XRP -15.2% at $0.41
- Bitcoin cash -14% at $451
- Eos -10.2% at $5.34
- Stellar lumens -12.6% at $0.22
- Litecoin -11.1% at $52.10
- Tether -0.3% at $0.99
- Cardano -12.4% at $0.07
- Monero -8.2% at $103.33