Not Enough Valuation Tools to Avoid BTC Whales
On the 9th of August, cryptocurrency prices took a heavy hit while investors continue acquiring stock following the new record drop just 24 hours ago, resulting in many of the top leading cryptocurrencies saw heavy losses in the double-digits.
Not enough info
After a rapid and sudden incident which almost resulted in a new annual low for Bitcoin, the first and leading cryptocurrency is off to a subtler start and currently valued at around $6.4K on Kraken. As experts have explained the plummet on the 8th of August, Element Management attributed the cause to a severe shortage of information on prices within the digital currency market and how cryptocurrencies are exposed to heavy fluctuations as a result of what is usually labeled as Bitcoin whales, single elite investing entities.
Director of portfolios at Element, Thejas Nalval and research director Kevin Lu wrote that Bitcoins fair pricing may have a large difference as compared to other significant assets also possessing fair pricing models.
Adding, both said that single entities, or Bitcoin whales, react to news like the drop on Wednesday poses a more likely change of short-term price driving than any other whale attempting to theorize on the value of BTC through models.
Alternative coins have also started off on the 9th of August in a subtle manner, with ETH taking a 0.2 percent dip down to $358 on the market, BTC gaining almost one percent and valued at $596. LTC has dropped around 1.2 percent and Ripple has managed a minor comeback of 2.7 percent following the painful 15 percent drop the day before.