Cryptocurrencies hit hard as Ethereum falls to 16-month low

The cryptocurrency market took another tumble on Monday morning, with bitcoin failing to find support at $5600 and dragging alternative coins down with it.

Traders in cryptocurrencies were hoping for prices to hold on Monday, only to see bitcoin slide another 5% during the early hours of trading, with the cryptocurrency hovering at around the $5250 level.

The tumble that bitcoin suffered helped drag other altcoins down too, with Ethereum falling to $152, representing a 10% decline and the lowest level the cryptocurrency has reached in the last 16 months.

Ripple and litecoin losses

With two of the biggest cryptocurrencies suffering large losses, it is unsurprising that other coins also suffered, with ripple (XRP) and litecoin seeing significant declines too.

In fact, XRP is down 5% and currently sitting at around $0.48 levels. However, it is worth noting that despite suffering losses, XRP faired far better than its rival Ethereum, which saw its market cap tumble to around $16.5 billion, after losing roughly $1.6 billion in value after a painful few days of trading.

The loss that Ethereum experienced was XRP’s gain, with the altcoin’s size exceeding its rival, making it the second-largest cryptocurrency in the market in terms of market cap.

Elsewhere in the market, litecoin, cardano and monero all were unable to escape the downward momentum, with all three cryptocurrencies losing more than 10% of their value over the last 24 hours.

Crypto loses its hold

Monday marks yet another dismal day of trading for cryptocurrencies, with the market falling to its lowest levels so far this year, with traders seeing more than $35 billion in value wiped off the table and left scratching their heads as to when the market will rise again.

But many analysts, including those at Bloomberg Intelligence, believe that there is worse still to come, with bitcoin’s price expected to fall to as low as $1500, representing a 70% decline in the price, which would likely drag the value of other altcoins to the point of becoming virtually worthless.

Cryptocurrency trading

Discover how to trade cryptocurrencies including bitcoin, ether, ripple and litecoin with a CFD account.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Find articles by writer