As major cryptocurrencies such as Bitcoin, Ripple, Ethereum and Bitcoin Cash undergo declines over the past day, the valuation of the crypto market has lost $5 billion suddenly.
Bitcoin and Ether recorded loss of around 1.5 percent, whereas Bitcoin Cash and Ripple recorded slight loss of 2.5 percent and 5 percent respectively.
On the other hand, three major cryptocurrencies, Stellar, IOTA, and NEO which made slight gains against Bitcoin and the US dollar over the past week, have also recorded losses in the past couple of days, dropping by 5 percent, 14 percent, and 7 percent respectively.
On August 6, it was reported that despite Bitcoin being on a downward trend and the chances of a sudden recovery, there are high chances for the Bitcoin price to drop further thanks to the sudden decline in the volume of the cryptocurrency market.
Report from CCN states that “However, in the past several hours, the price of Bitcoin and Ether have started to drop once again, testing $7,100 and $410. If the volume fails to recover in the next 12 hours, Bitcoin and Ether will likely breach the $7,000 and $400 levels in a similar way as they did on August 5.”
The volume of Bitcoin and Ether have shown no sign of recovery, both trading around the $3.8 billion and $1.3 billion level. The volume of Tether was stable around the $2.3 billion level, indicating that the entire demand for crypto has dropped in the past couple of days while the market activity has also declined.
Earlier in July, BitMEX CEO Arthur Hayes stated that Bitcoin could possibly test support levels in the $5,000 to $6,000 level before making a significant recovery, as it needs to drop to a level ground and show some stability before making recovery to previous highs.
“I don’t actually think we’ve seen the worst. I would like to see us test $5,000 to really see if we put a bottom in. But come back in Q3, Q4, I think is when the party is going to start again,” said Hayes.