CRYPTO SELL-OFF ACCELERATES FUELED BY LACK OF CONFIDENCE
The downward crypto trend continued over the past peek with the market cap dropping to $108 billion. This is in stark contrast to earlier this year when the value of cryptocurrencies reached more than $850 billion. Bitcoin is now valued at over $58 billion. At its peak, it was worth over $300 billion. Ethereum is valued at just $9 billion.
The crypto crash has led to layoffs in companies that specialized in cryptocurrencies. A report by the Wall Street Journal said that many large crypto shops like ConsenSys, Steemit, and Bitmain are in the process of laying-off tens of employees. This is because the sell-off of crypto has led to loss of confidence in the industry and reduced earnings. According to Ernst & Young, 86% of all ICOs are trading below their list price while 30% of them have lost their value. In addition, jobs related to blockchain have fallen by more than 3% according to Indeed.
Ethereum has been hurt by all this and ETH is currently trading at $85. This is the lowest level since last year when the price was on an upward trajectory. On the four-hour chart, the price is below all the major moving averages while the RSI is slightly above the important 30 level. Unless there is major news to support the currencies, the price will likely continue to deteriorate.