After consecutive months of profit and increased investors interest, the cryptocurrency market has had an uncharacteristic slump in the last week of July 2019. Key players in the market such as Bitcoin, Ripple, and Ethereum have all been affected by the turbulence.
Challenging Month
The end of July saw Bitcoin values dip below £8050 despite the prices having surpassed the £10,460 mark at some point within the same month. As expected, the fluctuations in Bitcoin prices affected its rivals in the cryptocurrency market.
Bitcoin’s closest competitor, Ethereum, also had a drastic dip in prices in July. From a high of £255, the prices dipped to as low as £175 on July 26.
The third biggest player in the market, Ripple was not spared by the difficult month. The banking-based cryptocurrency dropped to £0.25 after registering a month high of £0.33.
Causes?
The volatility in the cryptocurrency market has raised concerns among traders and investors: What might have caused the drastic and sudden slumps? When and how will the market recover?
Analysts suggest that the losses started shortly after the hearing of David Marcus, Facebook’s messaging products president.
Marcus was questioned about Libra, the upcoming Facebook cryptocurrency.