Last week of February 2019 was exceptional for crypto business. The optimism filled the investors as the rates kept rising for the whole week. It looked like February would end in a plus until Sunday afternoon. The cryptocurrency rate suddenly fell for an astonishing 10 billion dollars. Zilliqa, Litecoin, and Holochain suffered the largest losses. All other cryptocurrencies significantly lost value as well.
What are the new values after the sudden market descend?
With small fluctuations, the value on the cryptomarket kept increasing for the whole week, all the way up to 142 billion dollars. The sudden decrease at 13.30 GMT last Sunday caused the market value to fall to 130 billion dollars in just about one hour.
Different cryptocurrency websites show different rates but agree in general. Zilliqa (ZIL), Litecoin (LTC) and Holochain (HOT) were hit the most. According to the reports, Zilliqa ended up with 8.5%, Litecoin 7.5%, and Holochain 7.3% decrease. It is reported lesser decrease rates: 5.4% for ZIL, 4.2% for LTC and 4.3% for HOT. EOS and Bitcoin Cash (BCH) closely follow the previous three. Cryptocompare.com reported 3.5% rate drop for EOS and 3.5% for BCH.
Ether and Bitcoin are next in line by their rate drop. With the 3% rate descend, Ether is now worth less than 150 dollars each. Bitcoin price was fluctuating around 4000 dollars for the whole week. When it finally got over 4000 dollars, the decrease made it drop to 3800. Binance Coin (BNB) had one of the less affected rates about 1.5%, as well as the Tron (TRX). The two well-known remittance and settlement cryptocurrencies Stellar Lumens (XLM) and XRP also slid. The rates fell by about 4% for XLM and 3% for XRP.
Why did this happen?
Even though various statistics sources complicate making exact conclusions, they all agree that the cryptocurrency rate has fallen. In the same time last week, the cryptomarket was worth about 120 billion dollars. Sunday’s sudden decrease could return cryptomarket all the way to that value because it has abolished the increasing rates from last week.
Similar cryptomarket decrease happened in November 2018 but it had clear reasons. The traders remember BCH hard fork and two ICO projects SEC had requested to compensate the traders. Because in February 2019 there were no such events, there wasn’t any explanation why the rates fluctuate this much. Traders believe that the crypto winter has ended and that the market is on the edge of a new phase.
Recently, bots have been causing more and more market activity. Although this is a well-known practice, algos could also be used for wash trading.
Wash trading is when someone uses algos to deliberately boost cryptocurrency volumes and prices. The algos stop their activity when cryptocurrencies reach a specific value. This causes a sudden market crash like this one on Sunday. Knowing that cryptocurrencies increased in value last week and then unexpectedly crashed for no reason, to some investors this seems to mark the finishing phase of a wash trading process.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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