On October 11 an immense selloff started on the cyber-asset market. Within a few days, the market lost around $19 billion in value, reaching the bottom of $198 billion. Even though the market has already recovered to around $209 billion, the side-effects of the correction have been quite prominent.
One of the crypto-coins which suffered the most has been Ether. Media highlight that such a behaviour of investors demonstrates that the currency may even go deeper.
Ether Faces Consequences of the Selloff
According to CCN’s estimations, Ether has been adversely affected by the selloff, more, as it seems, than any other coin on the market. Its devaluation is also fueled by months of feeble performance. As the media outlet emphasizes as of writing over 300,000 short positions have opened for Ether. At the same time, investors wager that the coin’s price will keep declining.
The source supposes that size-able ICO selloffs could be the cause of this. It means that numerous ICOs have vended their Ether positions to compensate would-be deprivations. Also, they do it to support their further projects and functions financially.
It is noted in the article that Ether was traded at the margin of $1,500 at the time of the crypto-market rally. The latter, by the way, concurred with the abrupt leap in popularity of ICOs, based on ETH. Since that time, though, the virtual coin plummeted by over 90%. Therefore, a plethora of ICO treasuries, as well as investors, had to dump their «hodlings» so that to prevent massive losses.
CCN suggests, however, that there might be another approach to explaining why the ether price shorts reach record levels. In particular, it is assumed that this phenomenon ignited by the total market selloff is connected with a fall in goal equities.
Image Source: Flickr