The decline of the cryptocurrency markets hasn’t gone through any significant changes over the past few days. On July 24th, Bitcoin has experience sudden growth to $8,400 although by August 10th it managed to reach a new low of $6,100. Since then, it’s price has dived even further and this decline also affects altcoins, including EOS and Ethereum.
Rumours are circulating that many ICOs are cashing out their ETH vaults to pay their employees or to keep the business afloat in this bear market. While this is somewhat speculative, ETH will probably go a bit lower to test its $250 resistance and if it breaks, we might even see it as low as $200.
From the monthly highs of $145 billion, Bitcoin’s market cap has reached a new low, currently $103 billion according to Coinranking. Ethereum shares a similar fate with its market cap going down to yearly lows just a bit over $26 billion.
Bitcoin dominance affects altcoin investments
The declining price of tokens is partly caused by Bitcoin dominance which is removing investments from altcoins with products still unproven or unused. Investors are anxious regarding future events.
Nevertheless, the markets will eventually be affected by fundamentals providing a larger set of options regarding institutional investments including ICE’s venture, Coinbase Custody, and Gemini’s custodial options.
The present price action shows both traders and investors are prone to react more to events that could affect Bitcoin’s immediate price.
These days everyone is paying attention to upcoming decisions for Bitcoin ETF approvals from the Securities and Exchange Commission (SEC).
While it was no surprise for many, the Winklevoss Bitcoin ETF denial still had a significant impact on the markets even though it was short-term. Right now, the big focus is on the CBoE VanEck/SolidX ETF as this is the one considered to have the highest chances of approval.
The CBoE VanEck/SolidX EFT has been delayed last week and this news alone caused Bitcoin’s price to fall almost $500. The decision also affected the overall cryptocurrency markets and their future largely depends on the ETFs final answer which is scheduled for September 30th.