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Digital Economy:
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Weekly review of the cryptomarket: unfulfilled hopes

14 May 2018 00:00, UTC   |   3029
Weekly review of the cryptomarket: unfulfilled hopes
By Margaret NAIL
Last week was the challenging one for the crypto investors. Contrary to all expectations that Bitcoin will exceed $ 10,000, the cost of the leading cryptocurrency dropped below $ 8,300. This entailed a decrease in the value of many other cryptocurrencies. Read about the downs in the market and its reasons on Bitnewstoday.

How bad the market decrease was

At the end of the last week (May 13), the total value of the cryptocurrencies, according to the data of the coinmarketcap, amounted to 410.2 billion dollars, which is 8.8% lower than the level of May 7. Capitalization of some altcoins also decreased (by 8.9%), while the total value of Bitcoin dropped by 11.7%.

In the market structure, no significant changes occurred. Bitcoin's share increased slightly from 36.12% to 36.4%, Ethereum added 0.68 percentage points, but Ripple reduced its share from 7.50% to 7.22%, and Bitcoin Cash — from 6.54% to 6.27%, EOS has lost 0.4 percentage points.

Picture 1. Structure of cryptocurrencies market
Source: Bitnewstoday according to coinmarketcap

Bitcoin becomes cheaper

Last week didn’t start successfully for Bitcoin. On the first day of trading, the coin lost $ 273, dropping from $ 9645.67 to $ 9373.01. In just a week, Bitcoin lost more than 9.6% (or 922 dollars) in price. At the time of writing, BTC is being traded at 8 969 dollars. The coin reached its weekly minimum on May 12: that day the cost of Bitcoin fell to 8,223.5 dollars.

The graph below shows that on Sunday the coin has almost reached $ 8,800, but today Bitcoin continued to fall again.

Picture 2. Dynamic of Bitcoin cost

Experts indicate several factors that could negatively affect the dynamics of the cost of Bitcoin. Among them, unflattering statements of prominent authorities of the financial market. One of the world's largest investors, Warren Buffett called the foremost cryptocurrency “a rat poison squared”. Let’s remember, that earlier Buffett predicted the collapse of the cryptocurrency market and called investments in BTC “a gamble”.

According to another influential expert, Bill Gates, cryptocurrency is the most speculative thing in the world. Gates sees no reason why the cost of bitcoin should grow, as the coins are not assets.

Also, the cost of Bitcoin was adversely affected by the news about searches in headquarters of one of the largest crypto-exchanges in South Korea, Upbit.

In addition, experts believe that a message about getting 8200 BTC out from the exchange MtGox by its trustee Nobuaki Kobayashi was one more fly in the ointment.

Currencies that dropped following Bitcoin

As the cost of many large altcoins depends on the dynamics of Bitcoin prices, TOP-10 coins also lost in value.

Cardano has lost most of all: its value was reduced from 0.349948 dollars to 0.28589 dollars, while the capitalization of the coin decreased by more than 22%.

Ethereum finished this week a bit better: its value fell by 7.5% — from $ 793.34 to $ 733.50. The aggregate value of all ETHs decreased by 13.7%.

Coin Value Capitalization
Bitcoin -9,6% -11,7%
Ethereum -7,5% -13,7%
Ripple -14,4% -19,8%
Bitcoin Cash -15,5% -16,5%
EOS -15,4% -18,2%
Litecoin -15,8% -17,3%
Cardano -18,3% -22,4%
Stellar -9,1% -12,9%
IOTA -12,9% -16,9%
TRON -11,0% -18,6%

Table 1 — Change in the cost and capitalization of Bitcoin and the large altcoins
Source: Bitnewstoday according to coinmarketcap

The price drop is unpleasant news, of course, but it gives opportunities for investment.

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