Another Cryptocurrency crash? What the latest cryptocurrency price means for the cryptocurrency market and its traders.
Just as many crypto traders were hoping that the worst was over, the crypto landscape has been rocked by another sharp sell-off across the asset class.
Ethereum Leading Down
The biggest mover in the crypto space was Ethereum, which plummeted nearly 20% in a 24 hour period down to $262 per unit.
While Ethereum has been touted by many as a ‘next-gen’ cryptocurrency, it hasn’t been able to escape the overall downward trajectory of crypto assets in general.
This latest sell-off in Ethereum was sparked by a large number of ICO token holders cashing in their crypto holdings through the Ethereum platform.
It is believed that this on-going deflation of crypto prices associated with the Ethereum platform had a knock-on effect on the Ethereum coin itself.
And Bitcoin to Follow
Bitcoin followed its main competitor lower by 7% down to $6043.
While this drop was hardly precipitous, it does demonstrate how tightly linked the entire crypto space remains in the minds of most crypto traders.
Whereas a decline in the price of one of its main competitors could have been seen as a boon for Bitcoin, instead it was seen as a further sign of weakness in crypto assets as a whole, and Bitcoin sold off alongside the rest of the major crypto assets.
Relative Values
The biggest result of this recent cryptocurrency price action is that the relative values of Bitcoin and Ethereum have begun to shift back in Bitcoin’s favor.
Bitcoin was seen as the main loser in this year’s decline in crypto assets, while Ethereum seemed to be weathering the overall decline slightly better.
This relative value change fed the ‘next-gen’ cryptocurrency narrative that many of the fans of Ethereum like to suggest.
However, this recent move shows that the entire crypto landscape is still inextricably linked in the minds of most crypto traders, and for the foreseeable future they will continue to rise and fall together in relative tandem.
