In the past 24 hours, the crypto market dropped $8 billion as major digital assets including Bitcoin, Ether, and Bitcoin Cash recorded losses in the range of two to five percent.
Bitcoin Cash and Stellar recorded the largest losses amongst the top ten cryptocurrencies, while Ripple and EOS remained relatively stable with a one percent gain.
What is Triggering the Fall?
On July 27, analysts attributed the fall in the price of Bitcoin to the rejection of the Winklevoss Bitcoin exchange-traded fund (ETF). However, throughout the past three days, since August 1 to 3, analysts and traders have not been able to provide a specific reason to justify the fall in the value of major cryptocurrencies.
It is possible, as Tabb Group reported, that the over-the-counter (OTC) market of Bitcoin is two to three times larger than the exchange market of the dominant cryptocurrencies and large sell orders have impacted the market over the past month, driving up volatility.
Hence, the fall in the price of Bitcoin, which was mostly attributed to the rejection of the Winklevoss Bitcoin ETF, may have had very little to do with the ETF proposal but rather reflective of the OTC market in which major investors and whales trade.