Cryptocurrency Markets Tumble As Global Financial Meltdown Hits

Investing, News | October 11, 2018 By:

The dam finally broke on the sideways cryptocurrency markets of the last week, and unfortunately for investors, the spillover went south.  Like the US stock market, which suffered a major retreat on Wednesday, the cryptocurrency markets tumbled on Thursday.

In early trading, bitcoin was down almost four percent, sitting at the $6,200 level. Volume was heavy, indicating a possible rush to the exits by investors hammered elsewhere. But bitcoin was actually not the worse news of the day.

Elsewhere in the top ten coins, double digits losses were piling up. Ether was back below its magic $200 mark after some heady days as high as $228. LIkewise, Ripple XRP was down about 14 percent, Bitcoin Cash dropped 12 percent, and Litecoin was down 10 percent.

David Thomas, director and co-founder of UK cryptocurrency broker GlobalBlock, said it was “strange” to see the crypto markets react to other financial market troubles.

“There was a growing feeling that Bitcoin (BTC) was a “digital gold” asset and as such should weather such wider storms as equity market volatility,” said Thomas. “The fact that this hasn’t happened is interesting, as it suggests to us that more and more seasoned investors with wider portfolios are getting into cryptocurrencies and are using similar equity strategies to manage their positions.

“Financial markets tend to fall a lot faster than they rise, and when the equity markets see a move of this magnitude, perhaps there is a tendency to also flatten positions in crypto assets to clear the decks completely. This move indicates a high correlation between equities and cryptos, so if the stock market rout continues, then we could see further weakness in BTC. The key support levels to watch to the downside are $6,140 and $6,000.”

Bitcoin market highlights for the 24 hours ending October 11, 2018 at 1:00 pm US Eastern Time

The highest price seen was $6,769.80 on the Bitlish exchange at 5:55 pm yesterday. Bitlish saw $20,182,650 of bitcoin change hands.

The lowest price seen was $6,072.73 on Gemini’s exchange at 9:31 pm yesterday. Gemini’s 24 hour volume was $30,361,299.

The average price on the surveyed exchanges, as weighed by volume, was $6,348.71.

Volatility was unusually high, with the BlockTribune Volatility Index coming in at 87.0. A higher number indicates greater price volatility with 50 describing an average day.

These statistics were consolidated from 24 different exchanges. It includes only BTC/USD trades and only on those exchanges that had at least 1% of the total volume of BTC/USD trades during the measurement period.