Several of the top cryptocurrencies in the world by market capitalization fell today as of January 8th. This would not usually be big deal given that fluctuations in the market are so unbelievably common, but it has been occurring more frequently in the past couple of weeks. Aside from the top crypto’s losing money, many of the lower guys in the space of alternative coins managed to gain by quite a lot during the first week or so of the new year. According to a report on the subject “The price of Bitcoin, Ethereum, Ripple, and the rest are speculative.
As it is with any price speculation market, disparate coins seem to correlate, and nonsense movements can happen at any time. All it takes is a whale to make a big move, and the entire market can shift.” Many believe that there was an event that occurred that is the cause of this recent drop in price, given that the market is so heavily based on speculation. One of the positives of a dip in the market is that these coins usually bounce back quite well. Most of the currencies in the cryptocurrency space are dependent on the price action of bitcoin, the largest cryptocurrency in the world by market capitalization. When bitcoin manages to rise, the likelihood of most other coins in the space rising is quite high.
Given the high volatility of the market as mentioned prior, the hopes are high that the market will be able to bounce back quite quickly. With so many new investors coming into the space, the market on cryptocurrency appears to continuously grow at a very fast pace. This leads many to believe that we have barely scratched the surface on the opportunities associated with this new market.