Another week of sales!Dec 10, 2018
The 49th week ended up with a strong wave of sales, and as a result, total capitalization has decreased by more than 10% despite the market recovery over the weekend.
The number of cryptocurrencies billionaires has decreased by one more participant while the price of the largest cryptocurrencies has been declining.
Currently, Cardano has less than one billion US dollars capitalization. However, Tether rose in price by almost 2%, while most cryptocurrencies fell in price from 10% to 25%.
Bitcoin Cash and EOS became the outsiders of the TOP-10 cryptocurrencies, losing more than 30% of their capitalization over the last week.
Factom has shown the best results by adding more than 13%, while 80% of cryptocurrencies have shown a significant decrease.
Over the last 30 days, cryptocurrencies capitalization almost halved. On December, 7 it reached the minimum level below $110 while on November, 8 capitalization was $215 billion.
This is the most robust reduction of capitalization over the last few years.
The decision to postpone the launch of the Bitcoin-ETF became the main bearish fundamental factor for the market as well as for BTC. The SEC announced February 27, 2019, as the next date of possible approval of Bitcoin-ETF application.
Esther Pierce, a commissioner of the US Securities and Exchange Commission (SEC), dubbed “crypto mom” has mentioned:
“Definitely possible could be 20 years from now, or it could be tomorrow. Don’t hold your breath. The SEC needs more time, as it might take even longer to approve an exchange-traded product.”
There are two main reasons for extension:
the readiness of the SEC due to the necessity of a more profound study of the product and the lack of the necessary infrastructure for Bitcoin-ETF as well as the legal framework.
Negative news, including hacker attacks, put additional pressure on the market.
Moreover, panic is another critical factor on a par with SEC extending the consideration term to create Bitcoin-ETF.
Having analyzed the dynamics of the three largest cryptocurrencies by capitalization – BTC, XRP, and ETH, we can notice that after each significant price decline, correctional growth is very weak.
Besides, the prices are falling on growing volumes, and the correction is on low volumes.
All this reveals capital outflow or lack of small investors.
Price growth and market capitalization can be expected only after the approval of Bitcoin-ETF, which will allow attracting institutional investors.
This point of view is being shared by analysts of the largest investment funds and Bloomberg experts.
Therefore, the further price reduction of BTC, XRP, ETH, and some other cryptocurrencies remains the most predictable scenario for the nearest future, because till the end of February 2019 we cannot expect ETF approval.
The local technical support level for BTC is the narrow price range of $2900–$3000.
However, some experts expect a more powerful decline in the next few months.
Based on this, short-term cryptocurrencies investments become less attractive, and trading becomes more profitable due to the significant increase in volatility.