August is being a grim month for the cryptocoins market and the biggest scare was experienced when the BTC/USD price fell below $6000. All the trackers and price indicators showed how assets fell in red numbers with loss percentages higher than two digit numbers.
As has long been the case in the market, Altcoins prices follow BTC trends. The top ten currencies according to the indicators have lost between 17 and 20% of their price.
Storm in August
This downtrend surprised many as the uptrend that closed July had encouraged many investors to continue betting on Bitcoin as well as other Altcoins in the market. But the process was reversed when August began, leading many investors to lose what they had gained from the price hike.
Despite the sharp drop in Bitcoin prices, Altcoins are being hit harder. ETH, a solid currency in the market thanks to the large number of tokens and systems using its platform, has had losses of 40% so far this month. Similar trends can be seen in currencies such as Ripple, Cardano, Dash, IOTA and EOS.
Behaviour of Altcoins
According to the experts, this behaviour of the Altcoins was quite expected if one remembers that, during the Bitcoin price increases, the Altcoins market always had much more marked prices than those of the BTC, being a much more volatile market.
The same experts say that greater market dominance on the part of Bitcoin can help the downward trend of Altcoins is not so marked and has greater support within the market. It should be remembered that at the moment the predominance of Bitcoin over the market is less than 50%, numbers that have been decreasing every day throughout the year.
Another opinion that is important to highlight is that of Ted Rogers, the president of the Virtual Wallet Xapo. He warned through his Twitter account
We could be in the midst of the extinction-level event for “cryptoassets” that many maximalists have predicted. 90%+ of @CoinMarketCap list will disappear eventually – might as well happen now. Meantime, lower BTC price means incredible opportunity to buy more #bitcoin
— Ted Rogers (@tedmrogers) August 14, 2018
that current market conditions are ideal for Altcoins to become extinct within the market. For him, 90% of crypto coins will disappear and probably do so “now”.