For many of the top cryptocurrencies, last week proved to be brutal. Bitcoin saw a decrease in its worth over 4.46%. XRP ended up going down by around 4.49% while ETH went down more than 10.52%. The key $10,000 market saw Bitcoin dropping well below it. Across the entire list of major cryptocurrencies, the sell-off has been widespread. Out of the top 100 cryptos, only 13 were seen advancing to the top 100 spots this past week.
What These Drops Mean
These drops essentially mean that money being taken out of cryptocurrencies is not getting reinvested back into other types of crypto. It is leaving the class entirely and is not a great sign for the markets. Many experts suggest that the money may have been invested in many U.S. equities because they went up towards the end of last week as the trade tensions eased up.
This pattern often confirms how many of the top cryptocurrencies are being used as safe haven investment assets. When global tensions begin to rise and then retreat, the link between the changes is notable. A lot of factors go into the fluctuations in pricing for the cryptocurrencies when it comes to the short term. With Bitcoin dropping last week below the $10,000-key and then working its way back up, it is a representation of the Store of Value.
SoV is a safe haven for investors for their fiat sovereign currencies. As a result of using the alternatives, they end up having inverse reactions to the changes. Furthermore, the Bicoin currency system being treated as the king of all others shows that the U.S. dollar and the fiat sovereign currencies are the dominant reserves when others shadow in response to drops in the market.
Trying to figure out where the price of the major cryptocurrencies will end up next continues to be a difficult task. There are many ways experts determine changes in the short term. The tip of the iceberg is the many fluctuations that are always at play. Understanding them using the current news cycle can play off of bigger forces and can easily influence demand and perception. This will ultimately drive the prices of crytocurrencies up and down.
The pricing of BTC is very powerful. It not only attracts many other funds, but it also has a big impact on driving the market. With no new developments in the technology surrounding Bitcoin or its protocols, the growth is often related to the economy around the world.
