Bitcoin, ETH, XRP and LTC had a brutal week – And then?

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Last week was a brutal week for the main crypto-currencies. Bitcoin was down 4.46%, ETH down 10.52%, XRP down 4.49% and LTC down 12.06% – see Table 1. Bitcoin fell below key $ 10,000.

Table 1

Seven-day price change for major cryptocurrencies

Source: Coinmarketcap.com 31/08/19 at 9:30.

Even worse, sales have spread to the entire cryptocurrency list. Only 13 crypto-currencies are ranked among the top 100 – see Table 2.

Table 2

Number of advanced / rejected cryptocurrencies in the top 100 ranks

Source: Coinmarketcap.com 31/08/19 at 9:30.

This means that the money coming out of the main crypto currencies is not reinvested in other crypto currencies. He leaves the entire asset class.

It's a bearish sign for crypto-currencies.

Where is the money that leaves the cryptocurrency? Maybe in US stocks. They rallied towards the end of the week, as trade tensions between the United States eased, closing virtually unchanged – see Table 3. In fact, this is the moment of mass selling crypto-currencies.

Table 3

Source: Finance.yahoo.com 29/12/2016

This type of configuration confirms the role of the main cryptocurrencies as safe havens. They come together as global tensions rise and fall as tensions ease, though the connection between the two is not always clear.

"There are many factors that affect short-term cryptocurrency price movements," says Alex Karasulu, co-founder and CEO of OptDyn. "In recent days, we've seen Bitcoin plunge under $ 10,000 and then go back up. Cryptocurrency is a store of value (SoV), a safe haven for fiat sovereigns. As a result, it reacts to the reverse of situations impacting fiat sovereigns. In addition, the cryptocurrency system with Bitcoin as "king" (with tightly coupled altcoins) is analogous to the fiat sovereign currency system with the US dollar as the dominant reserve currency to which most other sovereign currencies shade in response . "

Nevertheless, it is very difficult to guess where the prices of the main cryptocurrencies will go. "There are many ways to speculate on these short-term price fluctuations," says Karasulu. "Many antagonistic forces are at play and most may only see the tip of the iceberg. To understand short-term fluctuations, we need to sort the current news cycle into the context of larger forces in order to understand its influence on perception, demand, and ultimately prices. "

Alex Lam, co-founder and CEO of RockX, suggests that market players are also paying close attention to Bitcoin. "While BTC's current price is within a normal range of fluctuation, BTC now holds 70% of the total cryptography market share," he said. "The price of BTC is a powerful thing because it not only boosts the market, but it attracts the most funds. Without significant development of Bitcoin technology or protocols, this growth is largely tied to the global economy. Due to the political and economic turbulence, investors consider BTC as a store of value. & Nbsp; "

As for the long term, Karasulu keeps a close eye on "halving". "In the long run, the" power reduction "in Bitcoins is approaching in May 2020," he says. "It's at this moment that the rewards granted to the minors still fall by half. To keep the profitability of mining at a constant level, the value of Bitcoin must double. "

It remains to be seen. & Nbsp; Meanwhile, cryptocurrency traders should closely monitor the US-China trade war.

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Last week was a brutal week for the main crypto-currencies. Bitcoin was down 4.46%, ETH down 10.52%, XRP down 4.49% and LTC down 12.06% – see Table 1. Bitcoin fell below key $ 10,000.

Table 1

Seven-day price change for major cryptocurrencies

Source: Coinmarketcap.com 31/08/19 at 9:30.

Even worse, sales have spread to the entire cryptocurrency list. Only 13 crypto-currencies are ranked among the top 100 – see Table 2.

Table 2

Number of advanced / rejected cryptocurrencies in the top 100 ranks

Source: Coinmarketcap.com 31/08/19 at 9:30.

This means that the money coming out of the main crypto currencies is not reinvested in other crypto currencies. He leaves the entire asset class.

It's a bearish sign for crypto-currencies.

Where is the money that leaves the cryptocurrency? Maybe in US stocks. They rallied towards the end of the week, as trade tensions between the United States eased, closing virtually unchanged – see Table 3. In fact, this is the moment of mass selling crypto-currencies.

Table 3

Source: Finance.yahoo.com 29/12/2016

This type of configuration confirms the role of the main cryptocurrencies as safe havens. They come together as global tensions rise and fall as tensions ease, though the connection between the two is not always clear.

"There are many factors that affect short-term cryptocurrency price movements," says Alex Karasulu, co-founder and CEO of OptDyn. "In recent days, we've seen Bitcoin plunge under $ 10,000 and then go back up. Cryptocurrency is a store of value (SoV), a safe haven for fiat sovereigns. As a result, it reacts to the reverse of situations impacting fiat sovereigns. In addition, the cryptocurrency system with Bitcoin as "king" (with tightly coupled altcoins) is analogous to the fiat sovereign currency system with the US dollar as the dominant reserve currency to which most other sovereign currencies shade in response . "

Nevertheless, it is very difficult to guess where the prices of the main cryptocurrencies will go. "There are many ways to speculate on these short-term price fluctuations," says Karasulu. "Many antagonistic forces are at play and most may only see the tip of the iceberg. To understand short-term fluctuations, we need to sort the current news cycle into the context of larger forces in order to understand its influence on perception, demand, and ultimately prices. "

Alex Lam, co-founder and CEO of RockX, suggests that market players are also paying close attention to Bitcoin. "While BTC's current price is within a normal range of fluctuation, BTC now holds 70% of the total cryptography market share," he said. "The price of BTC is a powerful thing because it not only boosts the market, but it attracts the most funds. Without significant development of Bitcoin technology or protocols, this growth is largely tied to the global economy. Due to the political and economic turbulence, investors consider BTC as a store of value. "

As for the long term, Karasulu keeps a close eye on "halving". "In the long run, the" power reduction "in Bitcoins is approaching in May 2020," he says. "It's at this moment that the rewards granted to the minors still fall by half. To keep the profitability of mining at a constant level, the value of Bitcoin must double. "

It remains to be seen. Meanwhile, cryptocurrency traders should closely monitor the US-China trade war.