The cryptocurrency market was in an optimal state to start an upward trend during last week's trading. However, investors' concerns and the aggravated news background caused a gradual pullback of the BTC indicators. The price of major altcoins also began to fall amid a sharply increased correlation with Bitcoin. On June 22, the cryptocurrency market lost 7% of its total capitalization, and digital coins fell to last year's lows.
The indicators of the major altcoin Ethereum sank by 29% over the week, and 7% over the past day. At the same time, the cryptocurrency shows extremely negative dynamics of changes in quotes in the context of several hours (-3%). Ethereum tried to stand at around $1,800, but the coin continued to fall. The reduction in altcoin quotes is due to the dependence on bitcoin and the negative news background. Despite this, interest in the cryptocurrency does not subside, and the number of unique addresses remains at a high level. This indicates the confidence of the retail audience. In addition, Ethereum remains the only coin among the major cryptocurrencies that gives confidence in its near future. On June 26, the developers will launch another test version of the network before the London hard fork. After the update, the ETH network will use a "Pork of Stake" consensus algorithm, as well as a roll-up tool. All this allows the asset to retain its audience despite the correction. The cryptocurrency will soon test support in the area of $1,800 and has every chance to continue falling.
The Ripple token fell by 17.5% over the past day, and the reduction in quotes for the week reached 37%. As of 12:00 UTC, the coin is quoted at $0.558. The sharp drop in the price started a few hours ago. The narrow dynamics of changes in quotes indicate a growing downward movement (-4.5%). The token underwent a sharp correction, which was aggravated by the dependence on Bitcoin. Given the uncertainty with the trial, interest in the cryptocurrency continued to fall. In the near future, the asset has every chance to test the $0.5 mark.
Litecoin sank by 16.5% over the past day, and the total losses for the week amounted to 36.5%. This is the largest collapse among all major cryptocurrencies. The coin has also undergone a sharp correction and remains negative. The narrow dynamics of changes in quotes indicate a further decline (-4.5%). As of 12:00 UTC, the altcoin is quoted around $112, but strong market pressure and a negative background can roll back the LTC indicators to $100.
Major cryptocurrencies continue their downward movement amid investor uncertainty, which escalated into a real panic. Bitcoin failed the test of the $42,000 mark, after which a rollback followed, provoked by negative news and players' uncertainty about the current prospects of the coin. Recall that on June 20, all mining companies in China were closed due to a government order. This negatively affected the capacity of bitcoin and directly influenced the fall of major altcoins. Despite the positive news coming in, such as a huge investment from MicroStrategy, the market has yet to find a bottom. In the near future, the downward movement of major cryptocurrencies will continue, and for a wide reversal, fundamental news is needed that will restore confidence to investors.
The material has been provided by InstaForex Company - www.instaforex.com