Bitcoin and Ethereum Price Crashes 20% – Blood Everywhere

Yesterday, it seemed that things were getting back to normal as it looked like Bitcoin’s price recovered after the $500 crash which brought it from a high of $2980 to a low of $2480. However, in recent news Bitcoin’s price crashed yet another 16% to a new low of $2297. Moreover, the rest of the cryptocurrencies aren’t looking too bright either, Ethereum for example tanked over 23% to a low of $310.

As discussed in our technical analysis article written yesterday, many speculators on Tradingview were predicting a Bitcoin crash. Most traders put the short target right around the $2400 level, it seems that they weren’t far off as Bitcoin is currently looking for support at the $2300 line.

Many will argue that the recent market action is a necessary correction and that in the long term, the cryptocurrency will continue its positive trend. While that may be true, in the short term Bitcoin may see some turbulence.

It’s all thanks to Bitmain. As their latest blog post suggests, on August 1st, if UASF activates, the mining giant will hard fork Bitcoin into their own version. Ultimately, if they get their way we might just see three Bitcoins on August 1st – one soft forked, one hard forked, and one with neither. This by no means is a positive development for Bitcoin speculators, and explains the main reason for the latest price dump.

Another factor which might contribute to Bitcoin’s recent crash, is congress’ new bill titled “Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017.” As the name suggests, this new bill basically says that cash is evil, crypto is evil, prepaid phones are evil, and gift cards are evil. If this bill comes to pass, expect crypto’s market to suffer significantly as the government would take quite a harsh stance on Bitcoin.

In more relevant news, taking a look at the top 10 cryptocurrencies based on market cap, all we can see is blood everywhere. Each and every single cryptocurrency has dropped in value in response to Bitcoin’s price crash. While some held their value better than Bitcoin, there is no denying that BTC is still setting the trend in crypto markets.

blooc everythwhere

Chart: Coinmarketcap

What is also surprising, is how Ethereum’s price once again converged to that of Bitcoin. After the meteoric price rise a few weeks ago, Ethereum’s price seemingly diverged from Bitcoin. However, in the past few days it seems that ether’s price returned to following Bitcoin’s. It is possible that Bitcoin is once again asserting its dominance, because when the red candles hit, investors are more confident in holding the granddaddy of all cryptocurrencies, rather than the teenager prodigy that is Ethereum. Not saying Ethereum doesn’t have potential for new heights, but there is absolutely no reason why Bitmain’s debacle should be affecting Ethereum price.

It may be that the ICO trend for Ethereum is slowing down and the bubble may pop. After all, there are dozens of ICOs coming out on the Ethereum blockchain every week and all are looking to make a profit. Investors might not get as excited about these projects because many already made profit off of Ethereum and would rather cash out, while others remain skeptical of unknown ICOs.

Moreover, Ethereum’s market cap came very close to that of Bitcoin. If Ethereum would’ve hit $500 and surpassed Bitcoin’s market cap, that would’ve been a historic moment since it would mark the first time ever that another cryptocurrency surpassed Bitcoin. However, with the block size debate heating up Ethereum may not need to rise to new heights in order to match Bitcoin, on the other hand it simply needs to hold its value. If that happens, we might see ether’s price once again diverge from it’s counterpart and possibly set new heights.

Disclaimer: This is not trading advice. If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

  • If it bleeds it leads huh? “Crashes – Blood Everywhere” Contribute to the hype in the rise and fall, just don’t call it journalism. Actually Ethereum went down to $289 but was up 5,000% in the last 6 months, so I think there is room for even a 30-40% drop and it would still be better than just about any other investment this year. Frankly, it makes it a good time to buy again. Especially since the network effect has not even become a factor yet.

    • Randy Jones

      Completely agree, this isn’t real journalism. it’s just a desperate attempt to make something out of the obvious expected correction. “Blood everywhere” as if the crypto scene is complete mayhem. It might be for new people who don’t have any research, but this is pretty standard. Only thing worth noting is the fork.

    • iPhonePhixer

      Exactly Sean. Bitcoin has survived every blow dealt.

  • Name

    I completely agree: blood and piece of corps everywhere. This is the beginning of the end in cryptocurrencies. The universe is collapsing.
    SELL NOW. SELL EVERYTHING. AS SOON AS POSSIBLE.
    No, wait, give me another 10 minutes, have to check if the FIAT wire transfers arrived at the exchange… oh yes, okay, it’s there, I’m ready.
    SELL NOW. SELL EVERYTHING. AS SOON AS POSSIBLE. ESPECIALLY ETH.

    • DJ AFINO

      lol

  • generalgoldstein

    >cash is evil, crypto is evil, prepaid phones are evil, and gift cards are evil

    Wonder where you read that OP

  • Justthefact1

    Bitcoin fall effects many others because the other cryptos are sort of glued to bitcoin. Where can you exchange the others for USD if bitcoin crashed?

    So the other coins need to be able to be exchanged for USD as well makes it more secure at least you will KNOW if bitcoin BIT it they are still worth USD or any other currency for that matter.

    I am unsure why this is not the case, probably some reason for it. I am not an expert in this just delve and dabble a bit.

    • Dan P

      Most of the coins in that top ten list can be exchanged directly for fiat currency on many exchanges. At least three (Bitcoin, Ethereum, and Litecoin) can be exchanged for fiat even more simply through Coinbase or similar.

      • Justthefact1

        Oops you are correct Thanks!

  • sc3pilot

    The text of the bill makes no mention of cryptocurrency. In fact, if you actually READ the text of the bill, it is not changing much from the status quo, and should not have any effect on any LEGITIMATE bitcoin exchanges, transfers, or services, above what is already in place.

  • sc3pilot

    The one and only mention of digital currency in the bill is the section that changes the scope of instruments that are considered illegal to use in the crime of illegal money laundering. It simply says that, instead of just “money orders,” pre-paid devices and digital currency are also prohibited for use as money laundering vehicles (although you’re already committing a money laundering crime no matter what instruments are used, it’s just another thing they can charge you with).

    If you’re a legitimate miner, reporting your income, and conducting yourself lawfully, this law has ZERO effect on you. If only affects you if you are already a criminal, and in that case there should be no sympathy for you anyway.

  • Stephen Jones

    So since I found out about ethereum, it rose from $5 to $420 and now it’s supposed to be bad because it fell to $300? Crap article

  • Droidboy

    Eth is almost back up to it’s price today. This article is dumb, sensationalized, and needs to be deleted tbh.

  • Scott

    I swear these guys try to manipulate the price with this “news”

  • jeroen weijenberg

    Well I just recently started with crypto coins (as of this week) so for me it is a really really bad day.
    Although I expect that everything will eventually rise again. now it sucks
    A lot of you guys started when the course was low so then there is no worries at all.
    But tomorrow or next week things can pick up again

  • ntziolis

    “What is also surprising, is how Ethereum’s price once again converged to that of Bitcoin.”
    There are multiplie factual errors in this statement

    #1 Its still called Ether, but calling it wrong feed the beast so keep calling it wrong 🙂
    #2 If you follow the minute by minute trading you can actually see that ETH movements dictated BTCs movements at the most critical junctures, for example the final stop of ETH and BTC was a MASSIVE multiple then thousand units of ETH buy wall at 250EUR ETH which was never breached (also held the USD prices), subsequently BTC stopped falling about 2-5min later once it was clear ETH will not fall further any time soon). There was no buy wall on any exchange for BTC at that time.

    Also I think after a rally like things in one class of assets its perfectly normal when people take their profits once in a while and usually this happens in bulk.