The market cap of the overall cryptocurrencies is under a blood bath once again after a month of stability. The market cap, which was previously floating above $210 billion has fallen drastically to $185 billion. The market cap had maintained its support levels at $200 billion which has now been breached and the market is plunging. The info-graphics of coin360.io show the red painted market situation.
BTC, which was being termed as a store of value finally, due to the strong stable behavior that it had shown for the past month has also plunged to its lowest for 2018, which has made the situation problematic for the ETF and regulation. The graph of BTC shows that the price as of now is the lowest which BTC has hit for the past year.
The stablecoin Tether seems to be in trouble once again with it’s price having plunged down to $0.94, once again losing its peg to the USD. The people have started becoming skeptical and taking out their investments from the coin.
All the analysts which were predicting the approval of the ETF based on the stability have reverted back to their bearish predictions. Talking to BlockPublisher previously, the analyst and investor Sam Ball stated that the market hasn’t yet reached the state of elimination of volatility. He said,
When total market cap is still so small, volatility is inevitable.
Having similar views, Muneeb Ali the CEO of Blockstack, shared his opinions saying that it’s important that we should understand that the markets are volatile by nature. He said, “These markets are cyclic and volatile by nature.” In this regard, it was asked if this volatile nature would be stopping crypto from becoming a store of value, he replied,
It would become a store of value, given a long enough timeline.
In an interview with a news agency, talking about the market plunge, Michael Terpin, a San Juan, Puerto Rico-based partner at Alphabit Fund said, “The market is trying to find the bottom.”
The market seems to be following the prophecies of Thomas Power, who stands firm on his predictions that the market would fall. Every currency would fall to 50% of its initial valuation. He predicted the fall saying that,
I’m a bear for everything. Expecting 50% fall across the board and shorting all of it.
He further added to the predictions giving numerical figures. He said,
Falling to BTC $3000 $ETH $100 then rising during the crash of 2020-2022.
From the directions of the market it seems that the prophecy foretold by Thomas Power would come true if the volatility doesn’t escape the market soon.