Weekly cryptocurrency review #4
The volume of trading on the Turkish cryptocurrency stock exchanges increases as a result of the Turkish lira collapse.
In the last week, cryptoclash exchanges in Turkey recorded a significant increase in trade due to the rapid devaluation of the Turkish lira, which reached the lowest level to the US dollar in history.
According to statistics provided by CoinMarketCap, the turnover on major Turkish cryptocurrency stock exchanges increased by over 100 percent in just one day. On the other hand, the total turnover remains relatively low, as the largest Btcturk stock exchange in the country only serves 11.6 million dollars a day.
Declines in the value of the Turkish lira are caused by global market concerns about the possible inability of the government to pay its debts. The declaration of "economic war" with the United States expressed by Erdogan at the end of last week only worsened the situation. The Turkish leader also called on citizens to exchange dollars, euros or gold for a lire, as this would help stabilize the national currency of the Turks.
The ongoing confusion undermined the population's confidence in the national fiat currency, at the same time increasing the attractiveness of bitcoins and other cryptocurrencies, despite the long-term downward trend in the cryptocurrency market.
The price of Ethereum falls below $300.
Ethereum, the second largest cryptocurrency in terms of market capitalization, recorded the lowest price this year, falling to $270. The price dropped by 17%, to the lowest level since September 2017. What's more, Ethereum's profitability decreased to historically low level, 0.0243 dollar profit per day for 1M Hash / s.
According to BitBay, the price of Ethereum is currently around $278 after a 17% drop in one day. After the most of the day the exchange rate remained at a level close to $400, in just three hours the price dropped to $300. Cryptocurrency reported a fall of around 60 percent this year, compared to a 54 percent drop in the price of Bitcoin.
The last drops are illustrated in the chart below:
According to financial media, the main catalyst for this drastic decline is the high level of sales pressure imposed on Ethereum by ICO. In addition, recent speculations about the potential manipulation of the Ethereum network could have contributed to the exodus of its enthusiasts after the network jams caused by an unknown spammer were reported last week. The ambiguity of what causes this type of increased congestion emphasizes the serious weakness of the network and causes uncertainty among Ethereum users through a clear drop in prices after each incident, because the positive investors' belief in the value of ETH is then questioned.
Bitcoin exceeds 50% dominance in the cryptocurrency market.
The oldest and most popular cryptocurrency has again been the largest cryptocurrency. For the last time, when the Bitcoin domination has increased to the current state, BTC was listed at the highest price level, around $ 20,000.
When writing the article, Bitcoin's dominance was 51.1%. This means that over 51% of the total market capitalization of all cryptocurrencies is included in BTC, which as you can see now has a very strong position in the markets, and applications for ETF funds have resulted in even greater interest by institutional investors.
Below is a chart of Bitcoin domination over the years 2013-2018. Until March 2017, the Bitcoin domination was (with fluctuations) up to 80%. The decline in domination was triggered by interest in other cryptocurrency projects, like Ethereum or Litecoin.