Crypto Market Plummets: Top Altcoins Suffer Heavy Losses, Bitcoin Mining Stocks Resilient
Summary:
Cryptocurrency markets suffered a steep blow on Monday, leading to a nosedive in value for numerous altcoins, some losing over 10%. Shiba Inu (SHIB) and Avalanche (AVAX) saw significant losses, along with Uniswap (UNI) and Dogecoin (DOGE). Meanwhile, Bitcoin (BTC) and Ether (ETH) also experienced drops in their value. Despite the overall downturn, Bitcoin mining stocks have been showing growth, compensating for losses from the April halving event. Industry experts could not pinpoint a specific reason for the plunge but speculated on potential factors.
Monday dealt heavy blows to cryptocurrency markets as they plummeted, with particular altcoins losing over 10% value. A Cointelegraph industry expert states that there is no identifiable reason for this occurrence. The overall cryptocurrency market cap fell by 3.5% in the last 24 hours, pulling down to $2.46 trillion.
Among the top 20 altcoins, Shiba Inu (SHIB) and Avalanche (AVAX) bore the brunt of the downturn on June 17, losing 12.7% and 10.6% respectively according to data provided by CoinGecko. Uniswap (UNI) and Dogecoin (DOGE) also experienced drops in the double digits, while Solana (SOL) suffered a dip of 9.4%. Standing alone amidst the downturn was Ripple's XRP (XRP), which actually managed a minor 0.1% increase, the only non-stablecoin to do so.
Over the past day, Bitcoin (BTC) and Ether (ETH) have dropped in value by 1.3% and 4.4%, respectively. Source: CoinGecko's price insights for the top 15 cryptocurrencies over the past hour, day, and week.
Apollo Crypto's Chief Investment Officer, Henrik Anderson, wasn't able to definitively pinpoint the root cause of the market drop. However, he speculates that the recent drop in interest for spot Bitcoin exchange-traded funds might be a potential factor. Anderson shares his thoughts with Cointelegraph, suggesting that decreased Bitcoin ETF flows might have triggered alt weakness, which in turn led to the liquidation of long traders dealing in Bitcoin, Ethereum, and Dogecoin. Spot Bitcoin's ETF has seen outflows on five of the past six trading days according to Farside Investors' data.
10xResearch, a digital asset firm, likewise attributes the altcoin crash to the decline of spot Bitcoin ETF flows over the past week, though it believes the causality occurs in reverse. The firm expresses surprise at Bitcoin's continuing slump in the light of weak inflation data and posits that the crash in Ethereum and altcoins might have been foreseeable.
Despite these market setbacks, Bitcoin mining stocks show steady growth in the past weeks, compensating for losses since April’s halving event reports an industry analyst. Blockware Solutions' head analyst, Mitchell Askew, notes that apprehension about post-halving profitability had led to mining stocks underperforming prior to the halving event. With this concern now addressed, the market is witnessing a return to equilibrium as mining stocks bounce back from underperformance relative to Bitcoin and its proxies like MicroStrategy (MSTR). As testament to increasing market confidence in the mining sector, Askew draws attention to the fact that the Valkyrie Bitcoin Miners ETF, WGMI, has seen a significant rise of 54% since the halving event.
Published At
6/18/2024 8:12:56 AM
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