The nuclear bear market is melting down like Chernobyl, with the price of Bitcoin crashing lower again on 24 November 2018, from USD 4,200 to as low as USD 3,650. Currently the price of Bitcoin is sputtering around USD 3,750, and perhaps it could dive lower again, since it is Saturday night and most crypto traders are probably unaware of this crash at this point. The total cryptocurrency market cap has dived to USD 124 billion, down USD 16 billion today alone; perhaps Bitcoin led this crash initially, but now altcoins are reacting more severely than Bitcoin.
This is the 3rd major crypto crash in only 10 days, and GenesisBlockNews is calling this a nuclear bear market. This is because experts were confident that Bitcoin would hold above USD 5,800 long term, but then a series of news acted like nuclear weapons in shattering that support level, leaving the market in an unrestrained free fall with no true support level. First Bitcoin Cash forked into ABC and SV, practically decimating the concept of Bitcoin Cash. Bitcoin Cash was around USD 600 before the fork, now ABC has fallen below USD 180 and SV is near USD 60.
Ethereum has fallen to USD 112, after being at USD 1,400 in January 2018. Ethereum is taking the brunt of the collapse of the initial coin offering (ICO) market. Most ICOs launch using the Ethereum platform. Now the Securities and Exchange Commission (SEC) is enacting harsh civil penalties against ICOs, starting with Paragon and Airfox. This was the 2nd piece of catastrophic news for the crypto space.
These civil penalties include the clause that investors who lost money have the right to get their money back, and the SEC said this is the protocol for punishing non-registered ICOs going forward. Paragon, Airfox, and all other ICOs that end up getting prosecuted by the SEC are at risk of going bankrupt, and investors are not waiting for this to happen, they are dumping their coins now. Ethereum used to be solidly in 2nd place throughout most of 2018, but now it is several billion USD behind Ripple (XRP).
The 3rd piece of extremely bad news was that physical Bitcoin futures on Bakkt are delayed until late January 2019; traders and investors were banking on the launch of these physical futures to cause a major Bitcoin rally, since it would open up a conduit for institutional investors to directly buy Bitcoin on major stock trading platforms.
XRP was fairly stable during the first week of the nuclear bear market, but today it is crashing just as badly as the rest of the cryptos, and is at USD 0.36. Stellar (XLM), which is similar to XRP, is down a devastating 17% today with a market cap that has fallen below USD 3 billion.
Litecoin has fallen below USD 30, after being as high as USD 370 about a year ago. The top stablecoin, Tether (USDT), continues to be unstable with a price dropping below USD 0.98 right now. EOS, the biggest ICO in history, has constantly been losing money since it went public and is down over 10% today, with a market cap that has fallen below USD 3 billion.
An important thing to note is there are only 8 cryptocurrencies with market caps in excess of USD 1 billion at this point: Bitcoin, Ripple, Ethereum, Bitcoin Cash, EOS, Stellar, Tether, and Litecoin. This is much less cryptos above USD 1 billion than earlier this year, and is a good measure of the drastically shrinking crypto market cap. The #1 privacy coin Monero has just fallen below USD 1 billion, as well as Cardano which is a popular alternative to Ethereum.
Dash, the #1 X11 coin, has crashed 10% and sits at USD 91. The #1 Directed Acyclic Graph (DAG) coin IOTA is down 14%. I could keep going, but you get the point, the crypto casualties are painting red across the board tonight.
It is not exactly clear what caused the crypto market crash tonight. Perhaps it is investors pricing in the delay of physical Bitcoin futures on Bakkt, or it is the increasing fear in the ICO market due to the SEC sounding their battle cry at the gates, or some other news that has not come to light yet.
GenesisBlockNews believes that crypto traders should disconnect their internet service completely and brew up enough sleepy time tea to pass out for 24 hours, since today could be ugly. It is Saturday night and most crypto traders have not seen this crash yet. Just remember, long term Bitcoin will probably go back to USD 20,000 and more, but it might take some months for the radioactivity from this nuclear bear market to decrease to habitable levels.
Simultaneously, GenesisBlockNews believes the crypto space should focus on the fact that Bitcoin is perfect decentralized money, and not focus on Bitcoin being an investment, making me unsure why I wrote this 800 word article on the market crash. I guess this crash is too juicy to ignore.