Categories: Bitcoin

ETH, BCH, and XRP Plunge 13% as Bitcoin Dips to $6,250: Factors


Bitcoin led other major cryptocurrencies and tokens including XRP, ETH, and BCH to fall substantially.

Large Fall of Major Cryptocurrencies and Tokens Were Expected

On October 7, CLC reported that the volume of XRP, the third most valuable cryptocurrency in the global market, plunged by more than 50 percent in less than 48 hours.

At the time, traders were concerned that XRP demonstrated such a rapid decline in its daily trading volume in a period in which the project has secured some of its most crucial partnerships including the deal with Banco Santander to utilize XRP to fuel the bank’s mobile application.

“The 50 percent decline in the volume of Ripple and the lack of momentum of tokens have shown that investors are not willing to take high risk, high return trades in a period of uncertainty. Ripple has had two productive months in September and October, securing major partnerships with influential financial institutions including Banco Santander,” the report read.

Since then, the volume of XRP has fallen from nearly $2 billion to $670 million. The significant drop in the volume of XRP led the cryptocurrency to continuously decline in value, recording another 13 percent decline on October 11.

Bitcoin Cash, which demonstrated strong momentum above the $500 mark, also demonstrated a loss of around 12 percent to $450.

The worst performing cryptocurrencies on the day include WanChain, Theta Token, Nano, Ripple, Tron, NEM, and Waltonchain, all of which dropped by more than 13 percent against the US dollar.

Yuji Nakamura, a Tokyo-based technology journalist, stated that traders in Japan and South Korea likely triggered the drop in the price of Bitcoin in the past 24 hours.

“Crypto getting spanked this morning in Asia. Hearing that Japanese day traders are leading the move lower, selling crypto to pay for unexpectedly big margin calls in stocks. Question is will Bitcoin $6,000 hold?” Nakamura said.

The volume of major cryptocurrency exchanges in Asia including Bithumb, Bitflyer, and Upbit have increased by a large margin in the past few days, suggesting that the sell-off of BTC was led by investors in Asia.

Can Bitcoin Hold $6,000

As Nakamura emphasized, it is of utmost importance for BTC to hold major support levels. As long as BTC can maintain momentum and show positive price movement above the $6,000 mark, it is highly unlikely for the dominant cryptocurrency to record another major drop to the $5,000 region.

Although BTC could initiate a speedy recovery in the short-term, it will be more challenging for XRP, BCH, and other cryptocurrencies with low daily trading volumes to see positive price development.

Featured Image from Shutterstock. Charts from TradingView.

Follow us on Telegram or subscribe to our newsletter here.
• Join CLC’s crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from CryptoLiveClub? Click here.
• Open Positions at CLC: Full Time and Part Time Journalists Wanted.

Advertisement
Disqus Comments Loading...
Share

Recent Posts

Bitcoin Has Outperformed Apple & other Tech Stocks Since Last January

In January of last year, the U.S. stock market went through one of the largest bull markets in recent history,…

4 mins ago

Blockchain is a ‘Systemic Risk’ for Financial Industry: DTCC Exec.

The Depository Trust & Clearing Corporation or DTCC issues a report every year on the stability of the global financial…

2 hours ago

If You Mine Ethereum, You’re a Target for Crypto Hackers

Hackers have devised a new way to steal your cryptocurrencies. This time, they are running a massive scanning campaign to…

3 hours ago

Bitcoin Tax Confusion Has Accountants Turning to Specialized Software

Every time you convert Bitcoin to anything, be it goods or services, other cryptocurrencies, or even tax payments, it might…

5 hours ago

No, the Price of Bitcoin Didn’t Drop Because of Bomb Threats

On Friday, as the Bitcoin price fell by around six percent against the U.S. dollar, several reports claimed that the…

7 hours ago

Alleged Reporter Says Republicans Won The Market

A person claiming to be the designated reporter for an Augur predictions market which asked the question “Which party will…

8 hours ago

This website uses cookies.