The value of the crypto market fell by more than $26 billion USD on Monday. Bitcoin, the largest coin by market cap, alone fell 10% in 24 hours. Other big players like ETH, XRP, and BCH also made double digit losses. The sell off of digital assets came after a major plummet in oil prices. Let’s take a shot at explaining the recent crypto dip – and answering the question “Will it Recover?”
Crypto and Oil plunge
The crypto market dipped as a result of plummeting oil prices, and further sell-offs in the stock market. The market cap of the entire industry was down a whopping $26.43 billion, from one day earlier – according to CoinMarketCap. The sell off only worsened as the day continued.
Bitcoin alone fell 10% during the 24 hour period. This sell off comes after the international benchmark for oil, Brent crude, futures dropped by 30% to only $31.02 per barrel – the lowest it’s been since February 2016. This was set off by Saudi Arabia slashing its selling prices, after OPEC couldn’t come to an agreement on production cuts. This has sparked rumours of an oil price war.
At the same time, stock markets in Japan and Hong Kong fell rapidly, and U.S stocks are set for a wild ride too. While Bitcoin, and other major coins, have reported losses, it’s important to note that Bitcoin is up 9% year-to-date. Major fluctuations in crypto prices are not uncommon, as they’re known for their volatility. With that being said, this current dip could be the best time to buy some Bitcoin. Read More...