For the second time this year, the crypto market cap has dropped below $200 billion as individual coins failed to hold on to previous highs.
Market Cap Falls to $192 Billion
Bitcoin is once again trading under $6,300, at $6,281, according to CoinMarketCap. On September 5th, it was showing some traction when it was valued around $7,300. However, on the 8th, it saw a significant drop in price, falling to just over $6,200.
Elsewhere, Ether’s price remains under $200, at $197 at the time of publishing. Bitcoin Cash and Litecoin are at $416 and $52, respectively. In a report from MarketWatch, Ricky Li, CEO of cryptocurrency trading and asset management firm Altonomy, said:
We are seeing a new low in volumes in the altcoin market this year. The top few [cryptocurrencies by market value] are still the safest space and we are seeing rotation out of them into Bitcoin.
However, according to Rob Sluymer, technical strategist at Fundstrat Global Advisors, Bitcoin is testing critical support. Not only that, if it breaks, it could potentially go lower. He says:
A break below $6,100 would signal a retest and possible break of $5,800 support with potential risk to $5,000.
At the time of publishing, the combined market cap is worth $192.4 billion. This couldn’t be any further from the $830 billion it was worth at the beginning of January.
Yet, despite market prices not being anywhere near where they were last year, Tim Draper, a venture capital investor and Bitcoin bull, believes that one Bitcoin will be worth $250,000 by 2022. Not only that, but he’s of the opinion that, in the next 15 years, the combined crypto market will be valued at $80 trillion.
The Market Remains Volatile
The highs of mid-December seem like a distant dream. When you take into account what is going on with the market at present, it feels like we may never reach those heights again.
Another factor which could impact the market’s value is the ongoing rehabilitation claims that victims of the now-defunct Bitcoin exchange Mt. Gox are filing to reclaim their lost money. In August, an online system launched for normal users to file their claims. Earlier this month, a similar system was opened for corporate users.
However, according to a former client of the exchange, a flood of payments could “completely crash the market.”
If users do end up selling their coins, this could ultimately push the price of Bitcoin down further to prices not seen since last year.
Do you think market prices will continue to drop? Let us know in the comments below.
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