The combined market cap of all digital currencies has fallen from an all time high of $116 billion to a current market cap of $63 billion, nearly halving in just one month.
Bitcoin is down almost 10%. Ethereum is down more than 20%. Nearly all other digital currencies are in red as billions are wiped out daily.
There is a sell-off across the board, with ethereum free-falling yesterday and continuing to do so at the time of writing, falling below $140.
While bitcoin has hardly fared better, down some $800 in just days, falling from around $2,600 to $1,870 at the time of writing.
That’s probably because the currency will likely split in around two weeks, with at least a smaller blocks and a bigger blocks coin expected, but there may be more.
That uncertainty has seemingly led to investors waiting out the events, with bitcoin’s downfall clearly affecting all other digital currencies, including ethereum.
The latter has its own ecosystem, but the ETH/BTC pair remains one of the most traded while most other digital currencies are traded against bitcoin.
Bitcoin’s up and down movements, therefore, are usually reflected in most other digital currencies, with even ethereum seemingly moving in the same direction.
But there have been times when ethereum and bitcoin have moved inversely price wise, with eth’s rise followed by bitcoin’s fall, however, that has not been the case recently.
Why, remains a mystery. It may be that sentiment has simply turned in both coins after an incredible bull run, but bitcoin’s price rose significantly last year after the ethereum split, so you’d think eth’s price would rise in anticipation of the bitcoin split.
Something that has clearly not been the case so far, with both currencies seeing the biggest price-crash in this space as far as the total value involved is concerned.
How long this will continue no one can say, but the picture should become somewhat clearer in the next two weeks, with August 1st fast approaching.