The whole crypto-market started with huge dips today, making investors and speculators panic. Regardless of the expectations for 2018 Q4, there are no signs of recovery in crypto-market, as there are few cryptocurrencies from top 100, that are green.
Cryptocurrencies like Ethereum, Ripple, Bitcoin all are struggling to keep momentum up or stable. The fact that crypto-market is going from black day, it has already dropped 5% of valuation (approximately $13 billion) in last 24 hours.
In last 24 hours, Bitcoin dropped by 4.26%, and currently trading at around $6,289, and all other BTC competitors including Bitcoin Cash, Ripple, Ethereum, EOS, Litecoin, and Stellar saw even bigger losses.
Ethereum (ETH) dropped by 11%, currently trading at around $201. Ripple (XRP) gone red by 13%, currently trading at $0.404. Bitcoin Cash also dropped by 12%, and currently trading at $450. EOS is dipped by 10% while trading at $5.3. Litecoin crashed down by 9.5%, currently trading at $52. Finally, Stellar dropped by 12%, currently trading at $0.213. In short, the whole crypto-market turned to red just like the Global Market.
Bitcoin (BTC) Price Today – BTC / USD
Why Crypto-Market Saw Sudden Drop
After performing considerably well last week, all major cryptocurrencies dropped by huge percentages this week, probably because of severe criticisms have done by International Monetary Fund (IMF).
IMF already informed that cyber-security hacks on global financial network posed another source of risk, and this is because they want to weaken cross-border infrastructures and also flows of goods and services. IMF thinks:
“Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system.”
A point to be noted is, IMF have given several warnings concerning cryptocurrencies before, and this is not the first. IMF stated in its report last week:
“Increased cybersecurity risks pose challenges for financial institutions, financial infrastructure, and supervisors. These developments should act as a reminder that the financial system is permanently evolving, and regulators and supervisors must remain vigilant to this evolution and ready to act if needed”
Now, we should not ignore the fact that several financial regulatory authorities still thinking of whether to include cryptocurrencies in world’s existing financial systems or not.
Another reason for sudden market fall could be that how 22,000 Bitcoin (BTC) coins moved to an unknown account today. Some crypto experts are thinking that this would be the act of so-called “Whales” of crypto-market.
Are Bitcoin Whales Stabilizing the Market?
Earlier this year, a new rumor has appeared which is moving around the crypto news that the bitcoin whales, which are known as the entities that hold largest portion of cryptocurrency, influencing the bitcoin price in market, and they are the reason for high volatility. Literally, many bitcoin experts and analyst tracking the actions of whales. Their actions were taken as the signs of what result to come.
This had earned them reputation of market’s biggest destabilizers. But, according to the research done by Chainalysis, Bitcoin whales actually stabilize the market in worst conditions.
As The Oofy reported before Are Bitcoin Whales Responsible For Price Volatility.
The study targets 32 largest whales and examines their behavior or pattern of trading cryptocurrencies. In the end, study shows that bitcoin whales are diverse group, and only one-third of them actively trade. Furthermore, whales have mostly traded against the herd. They bought coins when prices were going down, to stabilize the market.