Cryptocurrency market correction continues
With a few outliers, cryptocurrency markets are seeing price dips across the board.
Traders may be disappointed by the cryptocurrency market's failure to comprehensively bounce back after last week's falls, and with prices red almost across the board, it looks like there is a continuation of the previous market correction where potentially overpriced coins shed their value.
However, some coins have still seen price growth over the last 24 hours, based on prices from CoinMarketCap at the time of writing.
- Cindicator, up 37.5% - A decentralised platform where financial advisors meet artificial intelligence.
- Sirin Labs, up 34% - The world's first dedicated blockchain smartphone.
- Nxt, up 9.25% - A blockchain construction toolkit.
- PIVX, up 5% - A quick, low-fee and anonymous coin.
- Cryptonex, up 4.4% - A cross-chain cryptocurrency that aims to be versatile.
- MaidSafeCoin, up 2.59% - A secure crypto-powered computing network.
- Stellar, up 2.15% - International money transfer solution and Ripple competitor.
- VeChain, up 1.22% - Supply chain and financial services practical coin.
- Tether, up 0.09% - A coin pegged to the US dollar. A popular choice for maintaining crypto asset value during market slumps.
- Bitcoin, down 5.6% - The original crypto coin.
- Ethereum, down 4.5% - The most widely used smart contract platform.
- Ripple, down 3.75% - Largely centralised international money transfer business solutions coin.
- Bitcoin Cash, down 7.9% - The transactable bitcoin characterised by its larger block size and snappier transactions.
- Cardano, down 5.17% - A coin that makes big promises and has dedicated users, but is light on functions to date.
- Litecoin, down 6.88% - The silver to bitcoin's gold.
- IOTA, down 9.88% - A coin designed for the Internet of Things.
- NEO, down 7.08% - China's answer to Ethereum. Known for paying potentially large dividends and running smart contracts with a simple interface.
- Monero, down 8.35% - One of the oldest privacy coins.
Stellar Lumens and VeChain are the only top 20 coins by market cap that have gone up during this slump, and their prices seem to have stayed fairly resilient compared to the rest of the coins of the market.
Like all the coins whose prices are increasing (except Tether and arguably PIVX), they are considered to be very function-oriented coins. This might suggest the continuation of a shift away from classic stores of value like bitcoin and towards application-focused coins. Bitcoin's declining market share in recent months could be part of this shift.
The following factors might also be affecting prices right now:
- Cryptocurrency ratings due on 24 January. Buyers might be holding off until they know more.
- A slump in bitcoin price may be bringing down the rest of the market. Bitcoin is the preferred medium of exchange across many exchanges, so a drop in bitcoin price can mean less purchasing power around the market.
- Ongoing disruption of cryptocurrency markets in China, Korea and India.
- Cathie Wood’s ARK analysts predict Bitcoin at US$1 million each by 2030
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- Bitcoin’s price makes comeback despite Fed announcing potential interest hike in March
- Ethereum price recovers as its governing foundation reveals new rebranding strategy
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