uploads/2018/04/bitcoin-3090250_1280.jpg

Why Cryptocurrencies Keep Falling

By

Updated

Downtrend continues

The cryptocurrency downtrend has continued and most of the cryptos haven’t left the red territory for long. Bitcoin is down about 3.4% over the past 24 hours and was trading at $6,613 as of 6:30 AM EST, April 6, 2018. The RSI level for bitcoin has once again dipped to 32. A level of 30 is an indication that there could be potential upward reversion in price soon enough. The volatility in bitcoin was at 81.6%. On a YTD basis, bitcoin has fallen a whopping 54.2%.

Article continues below advertisement

Bitcoin movement is closely tracked by the ARKW ETF (ARKW). The fund was trading at approximately $49.9, and its RSI level has fallen to 43. Its volatility reading remains at 44%, as it is less volatile than bitcoin itself. The overall market capitalization of all the cryptos is at $248 billion. Some other top cryptocurrencies that have dropped include ethereum and ripple, which fell 3.1% and 5.6%, respectively. Bitcoin cash, litecoin, and cardano were also down 4.5%, 4.8%, and 4.3%, respectively. EOS was the only one among the top ten cryptocurrencies to see an up-day with a rise of 5.7%.

RBI’s regulations

One of the reasons that could be behind the negative sentiment in bitcoin is the Reserve Bank of India’s decision to ban banks that are involved with the RBI from doing any dealings with cryptocurrencies. Though this is not a direct ban on the cryptos, it makes it difficult for the crypto-exchanges to partner with bigger banks.

Another potential reason for the decline is the increased tax regulations in most countries where cryptocurrencies are heavily traded. The top performers of the day included bitcoin diamond, digixDAO, and EOS. The worst performers for the day were centrality, veritaseum, kin, and dent. These dropped 24.8%, 12.4%, 12.3%, and 10.1%, respectively.

Advertisement

More From Market Realist