Problems in the cryptocurrency market persisted on Monday as 92 of the top 100 digital currencies by market cap started the week with a price decline, led by bitcoin's 6% drop, CryptoCoinsNews reports.
The price decline for bitcoin brings it down to $2,400, declining about $600 since it hit the $3,000 mark two weeks ago, as CryptoCoinsNews reports. Almost immediately after breaking the $3,000 barrier, a selloff of bitcoin brought it down 27% that same week.
Bitcoin's recent declines has raised the prospect of rival coin ethereum supplanting it as the world's biggest digital currency. But while ethereum has been gaining in popularity - even stoking the interest of Russia President Vladimir Putin - a flash crash last week has slowed its momentum as it traded 19 percent lower on Monday morning at $245, according to data from CoinDesk.
Bitcoin price declines always increase discussions about the “Flippening,” the potential future event when another cryptocurrency (presumably Ethereum) will supplant bitcoin as the largest cryptocurrency by market cap. However, Ethereum has been dealing with its own problems. On June 22, it experienced a flash crash on GDAX, although it quickly recovered. More worrisome is the fact that Ethereum is experiencing network congestion and has yet to implement a long-term solution.
Consequently, the ethereum price has fared even worse than bitcoin. In the past 24 hours, the ethereum price fell 13% to $285.23. Ethereum too has been experiencing an elongated price decline, having fallen nearly $130 since it hit $410 on June 12. Significantly, ethereum’s ~$26.5 billion market cap is now only 63% of bitcoin’s ~$41.8 billion market cap.
Fred Wilson, a partner at Union Square Ventures and a digital currency investor, addressed the volatility that's hit ethereum in a blog post on Monday, saying "that people who had made a ton of money in the run up over the last six months were taking profits" and that "it could go on for a while." Willson remains confident about the cryptocurrency market over the next five to 10 years, but expects some volatility to continue in the near-term.
So, my gut says we are headed for a selloff in the crypto sector. But of course, I could be wrong about that. I am wrong a lot. But honestly, I don’t really care. I will keep buying into this correction or rally, whatever it turns out to be. Because the more important question is where these assets will be in five or ten years. And I have a lot more conviction about that one.
Ethereum is still up 5 percent for June, while bitcoin is up 6 percent for the month.
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