Most digital currencies are down by around 5% this morning as the market seems to slightly cool off following the arrival of summer and the holiday season with the sell in May and go away saying holding for most assets, including stocks.
In just two weeks, bitcoin has fallen from a high of around $3,000 to around $2,500. While ethereum has dropped from a brief high of $420 to around $300 where it currently trades. With most other digital currencies following, except for Dogecoin which is jokingly rising.
After a very bullish spring when highs after highs were reached, with digital currencies making 10x, 20x and even 50x gains, the total market cap now appears to be sidewaying with a slight tendency towards downwards.
Some suggest we may have entered a bear market, but price has been holding at around these levels, with no significant event to turn the market. As such, this may instead be a period of consolidation until the market figures out which way to go.
That, of course, is pure speculation, with price inherently unpredictable, but there is some uncertainty in this space, especially in bitcoin, where the scalability debate appears to near an ending.
Just over a month from now, bitcoiners will decide one way or another how to move forward on scalability. The Bitcoin Core roadmap appears to have gained the upper hand, with as good as all miners now signalling for segwit.
The big blocks side appears to be disorganized, lacking any leadership. They seem to be very unhappy, with some even suggesting they should fork off, but it’s unclear whether they’d be able to pull it off and even if they do it would probably be a minority coin.
That means the only choice for big blockers may be ethereum which largely follows the same approach. As such, the market may have to decide, among other things, which currency and platform has the best approach to scalability, with such decision made in the time-frame of perhaps years or longer.
Beyond that, there’s a lot of innovation going on. New coins keep being launched, like Sia and IOTA, new ICOs keep raising millions in minutes, so the party continues in some ways, even while most traders take a dip down the beach to cool off the heat.