Major correction has dawned the cryptocurrency market yet again this month with the current price decline seeming at an average of 10 per cent of all major cryptocurrencies out there including Ripple, Bitcoin Cash, while bitcoin and eithereum have lost over 5 per cent of their value.
This is the second correction this month with the first one taken a huge toll on market share of all major cryptocurrencies. While the prices revived the fall and everyone was seemingly gearing up for a bullish trend, the second correction took everyone by surprise.
As of this writing both bitcoin and ethereum have fallen by well over 5 per cent. If we look at the overall value of bitcoin, Bitcoin Cash, and Ripple – they are all down around 50 per cent from their ATHs at the end of last year. Ethereum is the only major cryptocurrency that hasn’t fallen that much.
The year 2017 has effectively been a year of upswings only and while there have been corrections throughout the year, none were too major to have wiped out billions from market cap.
Ethereum and Ripple surged by 130-fold and 330-fold each within one year and during that period, most cryptocurrencies in the market also increased by large margins. For long-term growth, it is positive that the cryptocurrency market has experienced a week-long correction as it would allow the global market to stabilize and solidify, shaking off speculators and weak hands. However, if the daily trading volume of the global cryptocurrency market continues to decrease, in the short-term, the cryptocurrency market could struggle to recover from the recent correction.
Over the past seven days, the daily trading volume of the global cryptocurrency market declined from $35 billion to $27 billion, as South Korean cryptocurrency exchanges Upbit and Bithumb overtook Binance and Bittrex to become the largest exchanges in the market.
The adoption of cryptocurrencies like bitcoin and Ethereum is rising rapidly in major economies with unclear regulations and policies. Hence, if the Indian and Russian government regulate their respective cryptocurrency markets in 2018, it is likely that the cryptocurrency market will surge in terms of daily trading volume and value.