Within a week, the valuation of the crypto market had declined by $50 billion, from $300 billion to $250 billion, driven by the drop of bitcoin.
Over the past day, the Bitcoin price dropped from $7,250 to $6,950, spreading its loss on August 4 and making additional losses of 4 percent on the same day.
The volume of bitcoin was drifting around $5.5 billion last week, while the volume of the overall market went above $18 billion. As of August 5, the volume of Bitcoin was still below $4.1 billion and the daily trading volume of the overall market has dropped by $7 billion within a week.
In most cases, the demand for Tether (USDT) rise when the price and volume of Bitcoin drop, as investors shift towards hedging the value of the cryptocurrencies to that of the US dollar.
Yet, in the past day, the volume of Tether has dropped from around $3 billion to $2.5 billion, demonstrating that the overall market activity in the cryptocurrency market has gone down in the past couple of days.
The challenge of the crypto market backed by the lack of momentum from leading cryptocurrencies coincides with the cryptocurrency sector making positive developments in its history.
The world’s largest stock market NYSE and coffee retailer Starbucks announced their partnership effort to boost the adoption of cryptocurrencies worldwide, as a standard and genuine payment method. It I expected that in the long-term, the forward-thinking approach of Starbucks and NYSE will significantly boost the adoption of cryptocurrencies such as bitcoin and ethereum by investors.
Regardless of these positive happenings, as well as the recovery of Bithumb, a leading cryptocurrency exchange in South Korea, the crypto market still shows a lack of demand and volume.
It is clear that given the sudden movements in the price of Bitcoin which do not mirror the positive developments in the cryptocurrency industry, the majority of the significant drops in the past month where as a result of movements in the over-the-counter (OTC) market.