Over $17 billion was wiped off the global market cap as the cryptocurrency market took yet another dip early on Thursday morning. The bulk flash sale was conducted in little over an hour, and saw the major altcoins lose value at more than twice the rate of Bitcoin (BTC).
Ethereum (ETH), XRP (XRP) and IOTA (MIOTA) all felt the brunt worst than most; each losing between 12% and 14% during the selloff – with ETH and MIOTA in particular drawing closer to 2018 lows.
Multiple reasons for the sell-off have been put forth so far, and yesterday’s stock market crash has emerged as the popular vote. However, the dip also coincides with the tightening of BTC’s descending triangle pattern which has been in play all year.
From yesterday’s high of $0.470005, XRP fell to the $0.405251 range, marking a 13.7% decline overnight. In the same time over $300 million entered the XRP market, and over 35% of the day’s trades came from Eastern markets, following the trend that XRP exhibited during its surge in September.
This morning’s dip to the $0.405 range means XRP is down 47% since its September peak, but remains bolstered against yearly lows thanks to its +100% growth that month.
Fundamental news coming out of XRP may look good right now, given its cascade of positive developments in the previous month. However, today’s decline showed that no altcoin has yet successfully ‘decoupled’ from Bitcoin.
Ethereum lost 12.2% during the overnight dip, falling from $226.65 to the 06:30 UTC low of $198.93. As has been the case for most of the year, the majority of ETH trades have come against USDT as the yo-yo process of Tethering and un-Tethering continues.
Of the $4 billion that entered the global market cap during the dip, over half a billion found its way to ETH markets, as daily trade volumes rose from $1.3 billion to $1.8 billion.
Today’s movement leaves ETH just a handful of dollars away from 2018’s yearly low. The amplified losses of XRP means ETH is now almost 25% larger by market cap – a major reversal after XRP’s brief overtaking of Ethereum.
IOTA (MIOTA) is one of the less-traded coins within the top dozen or so crypto projects, with daily volumes being as low as $21 million on Wednesday. That sum almost doubled to $38 million during the overnight dip, with MIOTA/USD trades on Bitfinex proving the most popular at 33% of the daily total.
Ultimately MIOTA shipped 14.4% of its value overnight, falling from $0.585923 to $0.501085 within the space of a few hours. That leaves some space between MIOTA’s 2018 low of $0.408336, but remains a long way off even quarterly highs.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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