Bitcoin, Ethereum Crumble, Alt-Coins Hammered - Will Buyers Step Back In Again?

Bitcoin, Currency, Technology, Money, Cryptocurrency

BITCOIN (BTC/USD), ETHEREUM (ETH/USD), AND ALT-COINS PRICE, ANALYSIS AND CHART:

  • Cryptocurrencies slump - US capital gains tax fears cited.
  • Turkish cryptocurrency exchange Thodex crashes, clients unable to access assets.
  • Fourth double-digit sell-off this year – volatility is back with a bang.

A sharp sell-off in cryptocurrency may offer further opportunities to get onboard the crypto-train if the prevailing market narrative is to be believed although the volatile nature of the move may cause some to hold back for a while. The last leg of the recent sell-off is thought to be due to US President Joe Biden’s capital gains tax proposals for the wealthy, although this plan may prove difficult to get through the house. The recent sell-off has knocked nearly $500 billion off the market’s capitalization, now $1.838 trillion, so if buyers are interested, they will have the opportunity to pick up coins at a decent discount to recent levels.

TURKISH CRYPTO EXCHANGE UNDER FIRE

Another negative for the cryptocurrency market this week was news that the Turkish crypto exchange, Thodex, had shuttered, leaving tens of thousands of investors at risk. The Turkish authorities - already looking to ban cryptocurrency transactions – have today launched an investigation into the platform and detained 62 people involved with the Istanbul-based exchange. The company’s founder and CEO, Faruk Fatih Ozer, was not arrested as he is feared to have already fled the country.

ALT-COINS UNDER PRESSURE

The largest losses seen over the last week have been in the alt-coin space with heavy double-digit reversals seen across the board. The alt-coin market has been in overdrive this year with many coins shows huge gains, the most prominent example being Dogecoin which at one stage was up 8,000% since the turn of the year. A lot of alt-coins have very small market capitalizations and trade at a fraction of a dollar, with buyers hoping that they have found, and got it on, the ‘next Bitcoin’ ahead of the crowd.

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