Crypto market overview: Bitcoin bubble popped?
|- Major cryptocurrencies are rangebound with a bearish bias.
- Bitcoin mania ended just like all manias of the past.
The cryptocurrency market is sidelined into the end of the week. While the dust seems to have settled down, bearish sentiments are still dominating the market with all major coins marginally in red. The total capitalization of digital assets in circulation now registered at $108B, unchanged from Wednesday.
Bitcoin is down 2 % since the beginning of Thursday, trading at $3,354 at the time of writing. The first digital coin attempted to break above $3,400 handle during early Asian hours but quickly returned to the previous range.
Ethereum, the third largest digital asset, is changing hands at $89.03, unable to pass through $90.00 handle. The coin is mostly unchanged on a day-to-day basis and down 1.5% since the beginning of Thursday. The coin's market value is registered at $9.4B, while the average trading volumes had settled at $1.4B from $1.7 yesterday. Declining trading volumes support the idea of rangebound trading amid low activity.
Ripple's XRP is hovering under $0.31. The coin is trading with bearish bias within a narrow range amid a sense of indecision on the market.
Meanwhile, cryptocurrency market gave back all the gains made during the mania that had taken hold in August 2017. Russ Mould, investment director at AJ Bell, believes that the current situation repeats the setup of previous bubbles, the dot-com bubble of the late 1990s.
“This brutal bear market looks like so many that we have seen before across a wide range of asset classes. A succession of rallies have tempted true believers and speculators alike to hold on, or even dive in again, only for those surges to become vicious bear traps, leaving holders of the cryptocurrency facing deeper and deeper losses,” the expert said.
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