The Black Friday did not bring breath relief for the Crypto Market, in fact, it brought in a New Year-To-Date Low as Bitcoin (BTC), Ethereum (ETH), and a majority of altcoins slips down further. BTC went below w $4,300 and Ethereum fell nearer to two digits with $120.
The selling pressure that began on Wednesday the 14th, the eve of Bitcoin Cash’s hard fork settled a little after sending BTC and ETH plummeting through supposed levels of support. Though that semblance of stability did not last very long as at around 1:00 am (GMT) on Friday as BTC plummeted below its $4,500 base established in the days prior. At the time of writing, Bitcoin was at $4,250, 78% down from its all-time high of $20,000. Ethereum soon followed and experiences a 7% drop from $130 to $120.
Read more: Arthur Hayes’ Prediction Comes True As Bitcoin (BTC) Falls Under $5,000
As usual, the altcoins followed close behind BTC, ETH, and XRP, who is down to $0.415 and -7% on the day. With the three market leaders in troubles the over cryptocurrency ecosystem if facing a massive challenge. The aggregate value of all crypto assets has fallen to a new year-to-date low at $137 billion, the lowest this figure has been since mid-September 2017.
While a lot of reasons can be cited for the fall, however, none can be clearly pointed or solely stated as the key catalyst. A few experts have predicted the plausible reason for the fall, an outspoken cryptocurrency advocated and believer, Susquehanna’s Bart “Crypto King” Smith, spells out that the relative unusability of fiat on-ramps is directly hampering the adoption of cryptocurrencies. He noted:
A wealthy individual from the GI generation isn’t going to take a high-resolution photo of their drivers license to send it to a website, and then send them money. They want to invest in Fidelity or at Bank of America, so that has led to the second problem, which is without the capital on-ramp, liquidity has been very low. And so we’ve seen a stable price through the summer… [but] when those sellers come in, there’s no liquidity to absorb [those sales].
Read more: BitMEX: Miners Are Losing Millions in Revenue Due To Bitcoin Cash Hash War
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