Recently, the Ethereum price fell by 20%, Ripple and Litecoin also fell by more than 13%, according to the publication Reuters. Ethereum long enough remained relatively stable cryptocurrency, due to the fact that many of the projects to create and sell their tokens used it in the blockchain.
It seems that now this situation had a negative impact on the price of the second largest capitalization of the cryptocurrencies. Now many investors who bought Ethereum to participate in the initial proposals of the coins (ICO), hurried to withdraw cash to cover expenses.
Because of this Ethereum fell to $266,4 by 20.7% on the stock exchange Bitifinex, while Bitcoin fell to $597 6.4%.
The inexperience of start-UPS played a cruel joke
ICO using the Ethereum blockchain, was one of the main catalysts for promotion of the cryptocurrency above $1000 dollars at the beginning of this year. However, as reported yesterday Bloomberg, the stock market started to accelerate very interesting trend which is that the investors who bought Ethereum to participate in the ICO, now urgent cash the means to cover their expenses amid fears that the bearish trend of the cryptocurrency market will continue.
“These startups are collecting a lot of money, but they don’t have enough experience of cash management, so they too soon begin to sell the tokens, thereby exerting strong pressure on the market. Last year it would be profitable, but the market is now so fragile that this phenomenon causes severe pressure,” said Biswa Das, an analyst at hedge Fund Capital BloomWater. Ethereum is currently trading at 9-month price low, which fell to $300 at the end of November. This year the cost dropped by about 60% but still lot of investors do not sell digital currency, expecting changes for the better in the market, says Das.
So the intrigue of the price recovery of the market is maintained.
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