The most recent cryptocurrency crash has been cause for a large amount of concern throughout the cryptocurrency world. Many of the top coins in the space have dropped by as much as 30%, with only one coin in the top hundred by market capitalization seeing any gains. The total market capitalization of cryptocurrency is down around 30% in the course of around two days. Bitcoin was only a few dollars from dropping below $10,000, but the coin managed to sustain itself around $1,000 above that price. The coin is now trading at below $10,000 for many of the top cryptocurrency exchanges in the space.
This is something that is extremely natural for the cryptocurrency world, and is something that happens on a regular basis. These types of corrections occur on a loop, but mostly around this time period of year. Ethereum has dropped down by as much as 22.5% to around $850, while ripple is down almost 30%. Unlike other crashes that occur, cryptocurrency crashes because many traders have decided to cash out there cryptocurrency to purchase fiat currency instead. This is a tactic that occurs when traders become scared that the market might crash. The one coin that managed to survive this massive crash is known as Tether.
Tether is in the top fifty cryptocurrencies by market capitalization, and saw its price rise above $1 instead of dropping as all the other currencies in the space did. Given that this market is one that is still relatively infant, the hopes are high that these types of price corrections can begin to slow down in frequency and how dramatic they are. Until the amount of these corrections can slow down, the world of cryptocurrency may be a place where it cannot move forward for the near future.