There’s panic in the air and great fear as the Ethereum Spring gives way to the Summer Craze with traders and investors telling stories of great losses while ethereum’s market cap goes down $4 billion in just one day.
Ethereum’s price fell by around $100 in just three days to a low of $175, to then somewhat stabilize at around $195 at the time of writing.
All other digital currencies are down. 20%, 30%, even 50%. Everything is red as bears have taken over, bulls are no where in sight, fear is the story of the day.
How long? How low? Who is to know. After all that partying, the hangover is here, because even while yesterday there were some memes and fun, today the mood is very somber.
The mood is maybe even sad. So we’ll have to wait and see whether anyone else is left to sell. Especially since tokens that have been cashing out are being punished the most.
EOS is down to $1.50 now, not far off from its ICO price. TenX is pretty close to being under. But they are all down, with the combined market cap loosing some $15 billion since yesterday, now standing at $80 billion.
No one is short of reasons to give for the downturn, but a significant one may be simply the nature of crowds. They partied too much, now they have to deal with the hangover.
A more far fetched reason may be that institutional investors are perhaps starting to move in. They like buying cheap, and perhaps in a fairly small market they know how to easily do so.
Mega ICOs cashing out take much of the blame, but exchanges crumbled under demand too, especially GDAX and Kraken, with users reporting their support staff is a very rare species indeed.
Some have suggested they’ve been waiting for weeks to get verified, with their fiat deposits probably more easily transferable by horse carriage.
It’s there where a weakness in the bull sentiment opened, especially after the GDAX flash crash, with the mood at that point uncertain, but starting to shift negative.
Then, Mega ICOs, which raised a million or more eth in just 19 days, decisively turned sentiment as traders tried to front-run their cashing out.
That was followed by attention bias giving priority to bears, yet all this feels like March 2013 as the similarities are considerable, but whether that is indeed the case, only time can tell.