Yet another #redday is upon us as crypto market continues to defy the bulls despite many bullish announcements and events.
In just three days, the crypto market has shed a whooping $42 billion off of its market cap. This is despite traditionally bullish news and events such as Consensus 2018 and a barrage of announcements from major Wall Street firms such as JPMorgan, New York Stock Exchange, Morgan Stanley and Goldman Sachs about getting ready to enter crypto trading.
This is a break from what we’re used to seeing in the crypto markets and is perplexing many commentators of this sector. But in fairness it’s perhaps not that unexpected given how fast the market rose from $250 billion to $450 billion in the month of April and early May. Since then we haven’t really seen a proper correction yet, especially among many altcoins, many of which more than doubled in value during this time. It’s also a classic case of buy the rumor sell the news when it comes to the Consensus conference. Last year was the exception not the rule.
Looking at the Bitcoin dominance chart, it’s obvious that the Altcoin correction is well underway, while Bitcoin is struggling to take off and it’s instead Ethereum that is growing its market share.
There seems to be renewed interest in ICOs with risk taking returning to the markets, but chasing the highest possible returns in new project as opposed to going into the established players. Why chase double digit percentage returns, when there are potential 1000x returns just one ICO away?