Altcoin Bloodbath Analysis and Prediction

After September 24, 2019, altcoins suffered a bloodbath. The crypto market cap has taken a 34% hit and altcoin prices are bleeding heavily with the top 20 showing over 34% loss within a single 24-hour window. The past few hours have been challenging for the entire cryptocurrency market. Leading altcoins have suffered double-digit losses and Bitcoin Cash SV has taken the biggest hit with a massive drop of 24.89% in the past 24 hours.

Leading altcoin Ethereum has suffered a massive drop of 15% in the past 24 hours and Ripple has fallen below the crucial $25 level showing losses of 11.35%.

Other altcoins in Top 20 that followed were Bitcoin Cash, Litecoin, EOS and Stellar with 23.66, 17.39, 21.78 and 12.38 percent respectively. After Bitcoin’s massive drop from $9,800 to $8,150 in less than a day and for the first time in months, the price dropped all the way to the $7,500 level. There is no sign of altcoin prices stabilizing for the following week.

There are several theories about the bloodbath like Bakkt Futures launch and the FATF update that’s leading to the delisting of privacy coins. There have been several interpretations and that has triggered its downward spiral. As of press time, Bitcoin is trading at $8,344.

The crypto market was disappointed by Bakkt’s physically-settled Bitcoin futures contracts that were aimed at pushing Bitcoin price upwards, however, the largely anticipated move did the opposite. The contracts went live on September 22, however, the entire crypto market has been jolted by the bloodbath. Sluggish volumes after the product’s launch could have dampened investor sentiment, however, the price drop has already diluted investors’ interest in Bitcoin investments. 59 BTC has traded on the platform in 24 hours and a total of 166 were contracts traded, according to fresh coverage from Reuters. Though not all crypto experts believe the Bakkt theory, there is a good reason for the price drop within a few days from the launch.

Though geopolitical crisis pushed the price of Bitcoin upwards, several factors may have contributed to Bitcoin’s massive price fall and experts are expecting the price to fall to the $7K level. Bitcoin’s weak moves could be correlated to the delayed no-deal Brexit, crash in Global Stock Markets, Volatility in Oil prices and the Middle East conflict.

Crypto market analysts considered that the drop in interest rates would fuel Bitcoin prices, however, it added more grist to the mill and turned negative for the cryptocurrency. The US President has been increasingly aggressive with his stance on Libra and other cryptocurrencies. Nonetheless, the central bank held fast with a measured approach and lowered benchmark rates to 2 percent.





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