23.03.202119:29 Forex Analysis & Reviews: Cryptocurrency market slips by 6%

Like Bitcoin, digital assets are going down, thereby showing the weakness of the market. And even though the currencies are holding on to safe positions, they cannot manage to grasp even a slightest bit of growth. In fact, over the past day, crypto assets dropped very strongly, as a result of which the digital currency market slipped by 6%.

More specifically, the sharpest collapses are seen in Bitcoin and Ethereum, which brought traders massive losses worth approximately $ 1.7 billion. Other cryptocurrencies also dropped, LTC / USD to $ 185 and XRP / USD to $ 0.51.

This evident fluctuation in Bitcoin is taken by many as a signal for a correction. However, the true reason for it is the loss of interest from large investors, who, against the backdrop of impending crisis, are transferring assets to more predictable and reliable sources of investment. Of course, a correction is plausible, but the market is currently undergoing a consolidation. This is clearly seen in the increased trading volume, despite the drop of BTC / USD to $ 53,000.

That being said, market confidence and a positive news background can become important leverage that will allow the BTC / USD pair to stay above $ 50,000 and not get caught in a correction.

But of course, the further growth of Bitcoin entirely depends on the behavior of investors. So if large companies begin to reinvest funds in stocks and bonds, and Bitcoin drops below $ 53,000, the market will undergo a correction.

ETH / USD, LTC / USD and XRP / USD may also drop to local lows, but the impetus will not only be a drop in Bitcoin. Fluctuations in the stock market will also set off a decline, but it will not be that massive since altcoins are not heavily influenced by investors. Nevertheless they will sink to $ 1,600- $ 1,700, $ 170, and $ 0.4, respectively.