Cryptocurrencies continue their downtrend on Monday with Bitcoin losing another 5% to 10,353 USD. The decline comes after the statement of the US President Donald Trump that he was “not a fan” of cryptocurrencies.
“I’m not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air”, said Donald Trump in a statement. “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity”, added he.
The US President was also critical of Facebook’s plans to create a cryptocurrency, called Libra, which will be pegged to a basket of government-backed currencies and assets to maintain a stable value. Facebook should apply for a banking license if it seeks to become a bank, said Donald Trump.
Meanwhile, during the weekend the Democratic-led House Financial Services Committee had circulated a proposal to bar tech giants from functioning as financial services institutions, or issuing digital currencies.
All these comments affected negatively the market sentiment, hitting the price of cryptocurrencies and pushing their prices down. During the last 24 hours, Bitcoin lost more than 5% to 10,353 USD. Thus, since climbing back to 13,102 USD on Wednesday, the cryptocurrency lost more than 20% and today even briefly broke the support of 10,000 USD. Nevertheless, Bitcoin is still up more than 160% since the start of the year, despite the recent pullback. Analysts had attributed the digital coin’s rise largely to news of big companies like Facebook getting involved in the crypto market.
The correction has swept the overall cryptocurrency market and not Bitcoin alone. Rather Bitcoin’s dominance in the crypto market has grown over the last week. At present Bitcoin dominates over 65% of the overall crypto market.
Crypto market recap
The overall cryptocurrency market has taken a blow in the last week. While Bitcoin contributed nearly 50% of the market crash, altcoins contributed the remaining 50%.
Ethereum registers a serious retreat today, wiping out 10% against the US dollar to 226.42 USD. However, the 24-hour trading volume is relatively high at 10.554 billion USD, which means that most of the traders possibly just cashed out earlier gains. Ethereum had almost 30% price crash dropping from 309 USD levels to making a weekly low of 219 USD. The cryptocurrency lost over 10 billion USD valuations in the last week.
Ripple’s XRP is performing much better, losing 2.61% in dollar terms, but gaining 2.19% against the Bitcoin. XRP is currently trading at 0.3128 USD. The cryptocurrency is the worst-performing coin of 2019. XRP lost over 25% slipping all the way from 0.39 USD levels to now at 0.31 USD. However, it still continues to be the third most-valued cryptocurrency in the market. XRP lost 3.3 billion USD over the last week.
Litecoin and EOS are down by 7.52% and 5.60%, respectively.
The Bitcoin-fork coins, Bitcoin Cash and Bitcoin SV, are the worst-performing cryptocurrencies, registering a decline of 11.87% to 291.24 USD and 13.90% to 121.83 USD, respectively.
Following the recent retreat, the total cryptocurrency market value dropped by almost 5 billion USD for a day to 280.356 billion USD.
Bitcoin price analysis
The cryptocurrency markets fell sharply on Monday, extending the freefall from the weekend after Bitcoin endured another 1,400 USD sell-off, denying the bulls a chance to revisit 2019 highs.
On Sunday, Bitcoin began to shed 1,400 USD from its price tag, dropping below 11,000 USD and then 10,500 USD for the first time since July 2. The price even briefly fell below 10,000 USD but quickly stabilized above the key support level.
Prices had initially attempted to rally above 10,800 USD but were stopped short as a quick reversal to momentum brought prices reeling back.
The price of Bitcoin has since fallen victim to the continual bearish sell-off.
The move down was also accompanied by a small surge in total trading volume of 2.8 billion USD over 24 hours as traders looked to book profit and exit the markets in quick succession amid declining crypto prices across the board.
The short term outlook remains volatile, so the Bitcoin could experience a bounce on today’s momentum, but that will need to be accompanied by strong levels in growing (bullish) volume in order to end the recent sell-off still being felt from July 10.