Bitcoin and the coin market in general are in the worst state of volatility at the moment. Bitcoin has plunged support level by support level for the past 10 days, consequently, dragging the whole market with it towards the rock bottom. The currencies had stabilized themselves at the overall market cap of above $200 billion, but the recent turn of events brought volatility back into the game, crippling the market cap, which now stands at merely $123 billion.
The graph above shows the peg of BTC to the coin market due to the dominance factor and the trends in which the valuation of BTC has plunged step by step reaching the point where it is. Bitcoin and the other currencies tried to restore their lost valuation but they plunged after a brief period of showing greens.
BTC is being traded at $3,688 as of press time, while XRP at $0,35 and ETH at $106.57. Another noticeable fact is that XRP has surpassed Ethereum in terms of market cap by a a huge amount, although analysts do think that market cap isn’t the best metric to analyze cryptocurrencies (As stated before by Mati Greenspan and Sam Ball)
Talking about volatility and instability of the market, BlockPublisher got in contact with the founder of Cuberoot64 , Anthony Parker who explained his views about the volatility of the market and what factors could fix it. He said,
Liquidity and user adoption/acceptance should reduce market volatility, but it’ll never be eliminated. Just look at the share market corrections we’ve seen in tech recently…markets will always fluctuate.
Further putting the example of Gold and how it took time to stabilize itself, he stated,
Even Gold, when it became a new asset class, had large market volatility. We need to give this technology time to bed in!
Whenever the subject of volatility and stability is addressed, ETF and institutional involvement (Bakkt for example) are linked directly. Sharing his opinions on this subject and predicting the time frame for the ETF approval, Anthony said,
An ETF will just enable some more traditional institutional players to join the market. My best guess is end of 1st quarter 2019, but this could be extended into later 2019.
Although the market is going through the worst of bloodbaths, it is being predicted that it would behave more like a slingshot, the lower the market goes, the higher would be a chance for a major bullish run.