It seems like the old proverb – after rain there is sunshine and after sunshine there is rain – holds true, also in the cryptomarket. After a short-term rally that started on February 21st, the cryptomarket cap plunged from $141 billion to $130 billion – an impressive $11 less.
The inability of bitcoin to break away from $4.200 might be the lead cause. This price level is a crucial resistance for the first cryptocurrency. This means that altcoins also took a dive down, together with bitcoin.
DonAlt – a technical analyst – stated that investors being too excited about breaking the price level got the market heated up. When the price level wasn’t broken, the market retraced. News of the Ethereum hard fork also got investors excited.
What is often seen in the crypomarket is that investors tend to leave their assets as soon as an event happens. This can be an update or product launch and the hard fork of Ethereum seems to be an event that caused a lot of investors to sell their holdings. This is potentially devastating to smaller tokens and assets – as these fall a lot faster than bitcoin does.