20.05.202118:36 Forex Analysis & Reviews: Altcoins continue to fall amid bitcoin collapse: forecasts

The last few days have been a turning point for the cryptocurrency market. The sharp declines in bitcoin and the negative news background provoked a sell-off of crypto assets, which caused technical problems on the largest crypto exchanges. However, compared to the previous days, the current drop in the crypto market did not go beyond 4.5%, and the total capitalization of all cryptocurrencies is $1.8 trillion. Over the past day, crypto traders have lost more than $8 billion in the market crash.

Ethereum quotes also began to decline due to reports from China and the subsequent collapse of bitcoin quotes. Over the past day, the asset has fallen in price by 10% and consolidated in the area of $2,686 with significantly increased daily trading volumes, which amount to $135 billion. At the same time, the narrower dynamics of changes in the price of the asset remain positive (+3.2%). However, the events of recent days have had a negative impact on the total capitalization of the cryptocurrency, which has decreased to $321 billion. In 24 hours, the losses of traders on the ETH/USD pair amounted to more than $2.2 billion. Due to an additional wave of negativity, the ether network could not withstand the load of users, and ETH commissions rose to $1,300. The Binance crypto exchange was even forced to suspend the withdrawal of the altcoin to stabilize the situation. Given the current market situation, Ethereum will not have enough of its own resource to hold on to safe positions, and the asset will likely sink to $2,500 by tomorrow

The XRP token, which has proved to be the sole driving force of the cryptocurrency market in recent days, also failed to stay afloat. The coin's performance has sunk by 19% over the past 24 hours, and daily trading volumes indicate increased attention to the asset due to its low price of $1.17. This is also evidenced by the dynamics of price changes over the past few hours, which remains positive (+3%). In the near future, the Ripple coin will try to reach the usual $1.4 mark, which will be helped by new users who have entered the asset at an acceptable level. The recent local victory over the SEC gives investors a reason to believe in the asset, but possible fluctuations in bitcoin can flip the coin again.

Litecoin shows the greatest dependence on the market situation. This becomes obvious both with the growth of quotes and with the fall. Over the past day, the asset fell by 21% amid the collapse of bitcoin to $30,000. Despite the positive dynamics of price changes over the last hour (+4%) and high daily trading volumes, the asset will not be able to hold an acceptable position above $230, even if it reaches it.

Despite the clearly negative background provoked by the collapse of bitcoin, statements about the tightening of regulation of cryptocurrencies from China and the United States, the market still has reasons for optimism in the longer term. For example, the American bank Wells Fargo has provided its institutional clients with the opportunity to make transactions with cryptocurrencies, and, according to a new report by Bison Trails, more than 80% of central banks are considering the introduction of state-owned cryptocurrencies. In general, the industry is mired in a depression, provoked by the natural process of redistributing the influence of individual coins, as well as the desire of states to receive income from a new type of financial transactions