75% of major cryptos down by 90% from all-time highs
Published
Recent data published by OnChainFX showed that nearly all the major cryptocurrencies have lost roughly 90 percent of their value since the attained all-time high. Crypto market going against the predictions
Back in February, Tom Lee — co-founder of Fundstrat Global Advisors stated that he believes that the cryptocurrency market has turned a new corner and new highs should be expected by the middle of the year. However, several months after that, the market is deeper in the red zone than it has been for a very long time.
The data showed that of the 15 largest digital coins by circulating market cap, 11 of them have lost more than 90 percent of their values from their respective all-time highs. Ripple’s XRP which is now the second largest cryptocurrency ahead of Ethereum trades around the USD 0.34 mark, meaning that it has lost roughly 92 percent of its value since the record high of USD 3.84 it recorded back in January.
Ethereum now trades above the USD 100 mark and has subsequently lost 93 percent of its value after it reached a peak of USD 1’431.
This is quite surprising as recent reports indicate that crypto whales have been increasing their Ethereum holding since the start of the year as they look to take advantage of a cryptocurrency they believe has huge potential.
Amongst the leading cryptocurrencies, Bitcoin Cash and Cardano are the ones that have been affected the most, with the duo losing 97 percent of their value respectively after peaking at USD 4’329 and USD 1.33. Bitcoin Cash has experienced a torrid time since the controversial hard fork.
Cardano has however made developmental strides since the start of the year but none of that has affected the price positively.
The leading cryptocurrency, Bitcoin hasn’t reached that level year as it has lost just 81 percent of its value peaking around USD 20,000 and is now trading around the USD 3,800 mark. NEO and NEM (XEM) are also amongst those to have recorded massive loses, plunging by 96 percent from their peaks.
NEM experienced a fall in price earlier this year following the Coincheck hack and it has not been able to fully recover from it.
Tron is also amongst the losers, with Justin Sun’s darling project losing 95 percent of its value since the highs it experienced early this year. Other top 15-cryptocurrencies facing declines of 90 percent or greater include EOS and Llitecoin (LTC). Cryptocurrencies experience a tough couple of weeks
Digital currencies have experienced a tough couple of weeks, with regulatory issues and Bitcoin cash hardfork some of the major catalysts responsible for the recent downfall . We reported earlier this week that the G20 is working on finding ways to regulate cryptocurrencies in line with standards put in place by the Financial Action Task Force (FATF).
The organization is looking to regulate the industry with the aim of curbing issues such as tax evasion, money laundering, and other crimes. Your email address will not be published. Required fields are marked * Comment Market Report Cryptocurrency exchange Coinbase supports Zcash
Coinbase has listed privacy-focused cryptocurrency Zcash on its platform after the cryptocurrency was listed on Coinbase Pro last week.
Published Kevin Kyburz
U.
S-based cryptocurrency exchange Coinbase has listed privacy-focused cryptocurrency Zcash on its platform. This latest development comes after the cryptocurrency was listed on Coinbase Pro last week.
The crypto exchange announced yesterday that its platform now supports Zcash, with the coin also available on their Android and iOS apps. Users will now be able to buy, sell, send, receive and store the cryptocurrency in the numerous platforms owned by the company. Coinbase impressed by Zcash
The exchange stated that: “ZEC will be available for customers in most jurisdictions, but will not initially be available for residents of the United Kingdom or the state of New York. Additional jurisdictions may be added at a later date.”
Coinbase further noted that Zcash is a cryptocurrency that uses recent advances in cryptography to allow users to protect the privacy of transactions at their discretion. The Coinbase in its statement noted that: “In both cases, the unencrypted/transparent version of the protocol allows third parties to see metadata associated with the communication or transaction, while the encrypted/shielded version protects this information.
Initially, customers can send ZEC to Coinbase from both transparent and shielded addresses, but only sendoff Coinbase to transparent addresses. In the future, we’ll explore support for sending ZEC to shielded addresses in locations where it complies with local laws.” Crypto world give different responses to listing
Zcash hasn’t reacted the way some people expect following its listing on Coinbase. The cryptocurrency surged last week after it was initially integrated into Coinbase Pro.
However, it plunged 17 percent on November 30 after the company revealed that it would be offering partial support for shielded transactions pending when regulations in the U.S will enable them to fully implement transaction shielding.
The announcement has received mixed responses from cryptocurrency enthusiasts on Twitter, from positive to distinctly unimpressed. Some crypto enthusiasts are of the view that listing the coin on Coinbase might have negative implications on its privacy. They argued that the primary feature Zcash which is secured using zero-knowledge cryptography might be affected now that it’s live on Coinbase. They added that since Coinbase is in the U.
S, it is subject to state and federal laws, with constant supervision from regulatory bodies like SEC and FINRA KYC/AML. If KYC is implemented on the exchange, then it would go against the virtue of the cryptocurrency since it would need the identity of every customer who trades ZEC to be known by Coinbase.
However, Zcash founder Zooko Wilcox is excited about the coin getting listed on Coinbase and is optimistic that the exchange would uphold the privacy features created by the cryptocurrency. He stated that “As the industry matures, we believe privacy protections will be mandated by most exchanges, governments and other financial institutions, leading to the broad adoption of Zcash.” Market Report What is arbitrage and how does it work?
Market inefficiency causes disparities and gives rise to arbitrage opportunities. Here is a guide on what arbitrage is, and on its connection to the crypto.
Published Veronika Khinich
The markets are anything but perfect. They are not efficient either. In its turn, market inefficiency causes disparities in prices of similar securities on different markets and gives rise to arbitrage opportunities. Here is a comprehensive definition of what arbitrage is as well as examples of how it works in real life, and more. What is arbitrage?
Arbitrage is best described as the simultaneous buying and selling of a similar security on different markets. It can be simple or complex, depending on the market’s conditions.
The goal is usually to make a profit from the differences in prices.
It is not unusual for different markets to have varying prices of similar securities.
For instance, consider company Z. Z’s shares may be priced at $1 on the New York Stock Exchange (NYSE). At the same time, Z’s shares may be priced at $1.05 on the London Stock Exchange (LSE).
Buying Z’s shares on the NYSE and simultaneously selling them on the LSE for a profit of $0.05 per share is essentially arbitrage. What causes arbitrage?
As mentioned, the inefficiencies (mostly, in communication) in the market create opportunities for arbitrage.
If different markets were in better communication with each other, there would be less arbitrage opportunities. But in reality, these opportunities will always be there as markets can never be perfect. But bear in mind: the prospects are changing, as we will explain further down. Basic examples of arbitrage
Arbitrage occurs more often than you would think, even among non-traders. It can be categorized into three classes, but there is no telling how an arbitrage opportunity may present itself.
The simplest example of arbitrage would involve taking advantage of inconsistencies in the price of simple goods. For example, consider the much coveted Nike special edition sneakers.
There are whole markets for these shoes on platforms such as eBay and Amazon. Buying a special edition sneaker on eBay just to sell it at a higher price on Amazon is a perfect example of arbitrage and people do it all the time.
The same also works on the money markets. Here, hedge funds and institutional investors leverage their vast financial resources to take advantage of inconsistencies in different markets – the definition given earlier sums it all up. However, there is also a complex kind of arbitrage that is mostly practiced by experts.
It involves at least 3 markets as opposed to the typical 2 markets.
It also usually involves at least 3 security assets, all of which should be interrelated when it comes to pricing. Arbitrage in the cryptocurrency market
The cryptocurrency market may be unique, but it is not perfect either. And as such, there are opportunities for arbitrage here as well – in fact, there are even more opportunities here than on the traditional financial markets.
Cryptocurrency arbitrage works very much in the same way as it does on traditional financial markets.
Crypto traders essentially buy digital assets on one cryptocurrency exchange and then sell them at a higher price on a different exchange platform. For example, this is done on a massive scale between the Asian and the Western cryptocurrency markets.
For a long time now the price of Bitcoin has been higher in the South Korean crypto market as compared to American and European markets. The considerable difference in prices seems to be driven by the high demand for cryptocurrencies, as well as by increasingly strict regulations that demand a compromise. Currently, many traders often take their chances by buying Bitcoin and other popular cryptocurrencies on Western exchanges and selling them on South Korean exchanges or directly seeking out South Korean buyers.
As mentioned, there are numerous opportunities for cryptocurrency arbitrage for several reasons, including, of course, inefficiency and the fact that cryptocurrencies exist in decentralized markets. Numerous crypto exchanges
There are several major financial exchange markets that set the pace for all other small-scale brokers. Usually, online stock brokers have aligning prices for their securities, but this is not the case with the cryptocurrency market.
Today there are virtually thousands of cryptocurrency exchange sites. Some are well known, but many are shady at bets – or even illegal.
All these sites are in competition and as such, they do not communicate well.
This creates a good environment for inefficiency and, consequently, opportunities for arbitrage. What’s more, the prices of different crypto exchanges are influenced by numerous factors that create even wider pricing disparities. Numerous digital assets
Bitcoin may be the face of cryptocurrencies, but it is just one coin among thousands of them. A myriad of cryptocurrencies have launched since Bitcoin, and many more are still in the making. This, coupled with the fact that there are numerous crypto exchange sites, is an ideal “greenhouse” for arbitrage.
All investors have to do is find the most volatile cryptocurrencies and crosscheck their prices on multiple exchanges to come up with several opportunities. The limitations in arbitrage
Arbitrage sounds easy enough, but it has several limitations.
The biggest of them is money itself. For the biggest part, arbitrage creates opportunities worth pennies. This makes it necessary to trade on a massive scale to get notable profits. Average investors would not make much and may even end up incurring losses from transactions costs. That is why arbitrage is mostly limited to hedge funds and institutional investors with vast financial resources.
The advances in IT are also limiting arbitrage opportunities. The reason is that exchanges are now communicating with each other better and in real time.
What’s more, the forces of demand and supply naturally work to cancel out arbitrage possibility. Nevertheless, cryptocurrency traders still have a lot of opportunities to look forward to, because the market is still growing and expanding at an exponential pace. However, the noose will tighten here too, once the official regulations start to kick in and the crypto markets become streamlined.
In conclusion…
Arbitrage, in essence, is simply simultaneously buying and selling a similar security on different exchange platforms. There are numerous arbitrage opportunities in the financial markets and even more in cryptocurrency markets.
Unfortunately, most of these opportunities are limited to large-scale investors, as it usually takes huge trades worth millions of dollars to make a profit. Market Report U.S. teens choose crypto over gift cards and cash this holiday
A recent consumer report, teenagers in the U.S are clamoring for cryptocurrencies instead of cash, gift cards, and gas money this Christmas
Published .