Capitalization of the sector fell below $200 billion, a day a digital money lost about 20% of the price, but the rate of bitcoin has remained above $6000
In the night of Tuesday, August 14, the price of bitcoin fell by 6%, to $6000. Rates of other digital money fell more — Ethereum fell by 17%, to $264, the price of Cardano and Ethereum Classic fell by 20%, the rate IOTA — 24%. Total market capitalization for the first time in 2018, was below $200 billion, now it is $194 billion.
The fall of the market of digital money could affect the government of Saudi Arabia, which recalled that cryptocurrency trading is prohibited on the territory of the country. According to local financial regulator, trade of bitcoin carries the negative effects and high risks for investors, as the government cannot control this industry.
Digital money is illegal in the Kingdom, no one has a license to trade. However, the Department has not reported what punishment awaits those who violate these rules. Previously, Saudi Prince al-Waleed bin Talal suggested that one day bitcoin might be impaired.
This cannot be considered as the fundamental reason for the strong drop altcoins, he said, “International financial center” Olga Prokhorova. She is confident that the market there is a General disappointment because the postponement of the decision to the SEC to launch a bitcoin ETF.
“Investors withdraw their capital from altcoins in spite of positive news about new projects related to Ethereum and Ripple, which conclude new partnerships. Global panic and the flight of investors from risky assets, which are observed in traditional financial markets has affected the market of cryptocurrency,” — suggested the expert.
Correlation with traditional instruments and crypto-tools — unexplored territory, but their relationship is now clearly visible, said Prokhorov. Agreed, the main analyst of “Broker Groups” Oleg Bogdanov.
He believes that large institutional investors are disappointed in the prospects of bitcoin and altcoins. Interest in this sector is declining, falling trading volumes and global retail chains are refusing to work with digital money.
“From a technical point of view, bitcoin came to the last line of defense this year, for $5800. If this support does not hold, the share price can quickly drop another 30%, to $3-$4 thousand,” — said Bogdanov.
Earlier, when bitcoin was trading at $8000, analyst Dmitry Lavrov predicted the fall of the first cryptocurrency to a level of $6000-$5000. According to the expert, then it can cost up to $10,000.
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