This week was a good week for most cryptocurrencies. However, the same is not true with XRP’s progress in many aspects.
Since yesterday, traders lost over 1.76% of their equity with a -0.58% price change throughout the entire week. More importantly, numerous false breakouts brought heartbreaking losses for traders during this week.
Despite the week’s acceptable returns, most cryptocurrencies plunged downwards from their previous all-time highs.
From a previous $826-billion market capitalization, Tuesday morning saw a drop of $320 billion, a whopping -158.125% loss in total market capitalization.
This supposed market crash reduced the wealth of over 12 cryptocurrency billionaires. According to Forbes.com, many billionaires saw their net worth drop from $62.3 billion to $56.8 billion, a -9.68% drop in equity.
Ripple XRP experienced the worse of this supposed market crash in terms of market capitalization.
Ripple experienced a 79% overall drop from the January high of $3.3153 to just over $0.672 this morning, a -79.73% drop in price. As the third-largest cryptocurrency by market capitalization, this drop took investors and traders by surprise with the numerous they shouldered because of this crash.
Steve Strongin, the head of global investment research of Goldman Sachs’, expressed his worries about the correlation between all the cryptocurrencies.
Unlike stocks that do not conform to an industry’s trend, Strongin wrote, “they [cryptocurrencies] all seem to move as a single class asset.”
If Strongin is right, a continuous decline in the largest market cap cryptocurrencies could be catastrophic for the cryptocurrency market.