The top 16 cryptocurrencies have fallen between three and 39 percent today as altcoin bubble fears close and Bitcoin feels the pinch.
2018 didn’t start on a good note for Bitcoin, as the monster rally that led to Christmas crashed, but it did make some recovery in and between a boom for several altcoins. However, Monday has not been a good day for the entire cryptocurrency market.
Looking down the charts of the major cryptocurrencies, it would be difficult to find one in black, as all the top 10 currencies reach a downward trend, led by Ripple, which had declined almost 28 percent in the last 24 hours.
Red in all areas
Coinmarketcap showed some nasty numbers for all the top 10 currencies, as Bitcoin registered as 11 percent, Ripple was down 28 percent and Bitcoin Cash was down 20 percent.
Ripple’s losses were by far the largest, especially considering the growth the currency experienced in recent weeks. Ripple reached $ 3 a coin a few days ago after it was added to Bloomberg’s price terminal in late December.
South Korea also recently boosted the altcoin market when the craze hit the Asian country with Ripple doubling attributed to South Korea being taken with the Blockchain-based payment solution for enterprise-level global payment transactions.
A bubble in the ripple?
Ripple’s low numbers may be due to the fact that Coinmarketcap does not include information from some South Korean exchanges, but there are other concerns underway.
“The reason the Ripple is increasing so much is that it’s a bubble,” said Erik Voorhees, CEO of digital asset exchange ShapeShift and a vocal advocate of Bitcoin as a way to separate money and the state. “Testing crypto with banks doesn’t make sense. The idea of crypto is that you don’t need a bank.”
The technology behind Ripple is aimed at large institutions, which has given it an air of legitimacy that has in turn spurred the price and created a hype for investors.
However, cryptocurrency enthusiasts say that centralization is the exact opposite of what digital currency technology should be about.
Many saw the recent drop in Bitcoin dominance as the resurgence of altcoins, with Ripple, and even other minor currencies like Verge stealing the spotlight. However, this recent drop seems to suggest that there are still strong links between many currencies with the dominant force that is Bitcoin.
The saying goes: “an upward tide lifts all ships,” and the same goes for a fall. With Bitcoin still the biggest ship in the bay, it makes sense that if a problem affects it and its price, other currencies in the crypto market will also feel the effect.
Famous stock picker Ronnie Moas recently predicted there would be a pullback in this so-called’ altcoin season’, and perhaps, this is all as everyone goes down before the more established digital currency goes up again.