Sell-off picks up momentum as Bitcoin slips below $57,500 and Ethereum loses 6% overnight

THE sell-off across crypto markets continues this morning, driven by uncertainty surrounding the Mount Gox pay-outs, according to analysts. Bitcoin is trading below $57,500 - a level not seen since May.

Ethereum is down almost 6%, with other cryptocurrencies experiencing similar or larger declines over 24 hours. Altcoins have been particularly hard hit, with some posting losses of 8% or more.

The Fear and Greed Index is on the verge of slipping into 'Fear', and the Bitcoin Relative Strength Index is now in oversold territory.

Many analysts believe the recent drawdown in crypto prices is driven by investor concerns over the potential impact of Mt Gox repayments on Bitcoin and Bitcoin Cash prices. Mt Gox, once the largest crypto exchange, was hacked in 2014 and is set to start repaying investors billions of dollars in crypto at the beginning of July.

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In the Markets

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Total crypto market cap

$2.16 trillion (-4.1%)

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What Bitcoin did yesterday

Daily high $62,263 |  Daily low $59,466

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Bitcoin market capitalisation

$1.15 trillion (-3.8%)

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Bitcoin volume

$34.9 billion (+55.2%)

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CoinDesk Large Cap Select Index 

-4.27%

The CoinDesk Large Cap Select Index (DLCS) measures the market cap weighted performance of some of the largest cryptocurrencies and gives a general indication of the overall performance of the crypto market. 

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SP500

+0.51%

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Fear and Greed Index

45 (Neutral) 

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

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Bitcoin’s market dominance

54.44

The Bitcoin Market Dominance indicator measures the percentage of total cryptocurrency market capitalisation represented by Bitcoin at a given time.

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Bitcoin Relative Strength Index (RSI)

31

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

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Post Script…

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Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

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