$50B Drop in Valuation Within Cryptocurrency Market
The cryptocurrency market has seen a $50B drop in valuation from its previous $300B following in the stumbling footsteps of Bitcoin and its own drop. Within one day, BTC dropped from $7250 just under the $7K mark at $6950, dropping an additional four percent on the 4th of August.
In the previous week, Bitcoin held itself at the $5.5B mark and total crypto market volume rose over $18B. On the 5th of August, BTC is currently under $4.1B and its 24-hour trading volume has plummeted throughout the entire market buy at least $7B within one week. A common occurrence whenever the first and leading cryptocurrency begins suffering drops is that the demand for Tether rises as a means of mirroring the USD in value.
Despite this, Tether has seen its own drop of around $500M down to $2.5B which indicates a shortage of activity within the entire crypto-market over the last week. Unfortunately, this period is occurring at the same time when crypto and blockchain-tech have advanced and developed further than ever. The New York Stock Exchange and Starbucks have announced a partnership dedicated to spreading the adoption of cryptocurrency use cases on an international scale and eventually aid in the classification of crypto as a legal currency.
Even with all the good news, including Bithumb’s revival of operations, the market is heavily lacking in any activity and is clearly missing demand and trading volume.
As it seems, over-the-counter adoption has been pointed out as a reason for the fluctuation of Bitcoin within the last 30 days and its drop. According to reports, the Union Bank of Switzerland has also stated that BTC is too unpredictable and volatile to be classified as a legitimate currency and adopted into the mainstream.
Stated by the bank, it has deemed Bitcoin and cryptocurrencies limited in supply and completely unreliable in terms of volatility and price to be a legitimate international payment method. Should cryptocurrencies, in general, maintain the constant malicious alterations and suspicious actions, the SEC may possibly decline yet another Bitcoin ETF and any related proposals due to these factors. A few institutions under accepted regulations like the NYSE have confirmed positive back towards Bitcoin and its expanding market.