Cryptocurrencies are losing popularity, the expert described the reasons for
August is a big month for cryptocurrency market is not easy. Total capitalization has fallen by almost 25% over the last month – from $298 billion to $225 today. Where and why spent $73 billion from the market?
The answer to this question must be sought in the dynamics of the fall of the total market capitalization of cryptocurrencies except Bitcoin. If you look at the numbers, we can clearly see that the main assets from which crypto-investors withdraw money are altcoins.
The total value of altcoins a month ago was $ 157 billion, and at the time of writing, it is only $105 billion. That is, these assets lost value as much as $52 billion On this background, Bitcoin is becoming increasingly significant “monopoly” crypto-market, its dominance continues to grow and reaches at the time of the review 53%.
As the reasons for the surge of interest in the cryptocurrency sphere and the reasons for the end of an era “hype” can be found in the field of ICO. Is the market attracting investment by initial placement of tokens contributed to the fact that investors are massively buying cryptocurrency, and paid special attention to such Aldona as Ethereum, which is the main venue for the ICO.
However, when the regulators began to “tighten the screws” uncontrolled functioning of semi-black market, it has become a barrier for growth at the same pace as before. Prices began to fall, and with them the profits raised during the ICO, forcing the projects as soon as possible to transfer their funds in Fiat, thus further weakening the currency.
A similar situation exists in the mining market. If the miners received a substantial premium for their activity, which not only blocked the costs to purchase expensive hardware and pay the electricity bill, and attracted new participants in this business, the market decline, the trend has ceased to be relevant.
How much bitcoins you are damineli, pay for electricity will have in Fiat currency. And if earlier this growing market making interesting strategy of accumulation of cryptocurrency wallets of miners, but now many have to resort to selling their stocks.
Without positive news the market gradually loses liquidity, and this trend, unfortunately, will continue. Investors sell altcoins, and the released funds transferred to the Fiat and partially in Bitcoin. Amid expectations of an imminent launch of cryptocurrency OTC funds (ETFs) Bitcoin is almost the only candidate as a cryptocurrency for sale in the short term in the range of the next quarter.
“International Financial Center”