Bitcoin’s crypto peers have reversed earlier gains and are now trading deeply in the red, at times amplifying Bitcoin’s losses as typically observed in the past during such periods.
Litecoin (LTC) is down by 11% to $16.60. During the climax of heavy selling in Bitcoin, it touched a low of $13.36, a drop of 27%.
Peercoin (PPC) is now down by over 11% to 6.9 mBTC ($4.16).
Dogecoin (DOGE) is hanging tight, swinging between gains and losses, currently down by 0.8% to 1.93 µBTC (0.12¢) as it continues to demonstrate remarkable resilience and faith from its supporters even during tough times for cryptocurrency.
None of the top 15 altcoins, and only 2 of the top 20, are positive in today’s trading.
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Earlier, most altcoins were experiencing huge gains in what appeared to be a correction in the midst of relief following yesterday’s moderate losses. Many were up by double digits. Dogecoin was up by over 30% at one point, pulling away further from Nxt and closer toward Peercoin. Even under current selling pressure, DOGE has not relinquished its advances in market cap rank, as both PPC and Nxt are limping on double digit declines.
The earlier gains were in order as Bitcoin (BTC) prices were relatively unchanged following yesterday’s sell-off Part I. During that period, altcoin losses were kept in check as the crypto world was more concerned about Bitcoin in general, and on MtGox in particular. It follows that traders saw no reason to hold back the value of altcoins when BTC stabilized as the market awaited the update from MtGox.
However, once the revelation from MtGox came forth, gains quickly reversed into steep losses. Today, fears of Bitcoin’s sustainability are running deeper, specifically as disagreement erupts as to the stability of its very protocol. It follows that the same fears should apply just as much, if not more, to its crypto peers, many of whom are not as well established.
The market has reacted in kind, punishing most altcoins, although not on as exaggerated a scale as previously observed. In Litecoin’s case for example, it is still hugging to the 26 mBTC level, in fact trading more or less in tandem with Bitcoin.
The reality is that altcoin reaction really depends on the underlying causes for Bitcoin’s struggles. When China imposes severe restrictions on Bitcoin trading, it must follow that all of cryptocurrency is under threat. Here, doubts may have crept in to cryptocurrency’s long-term stability, but such doubts have only been expressed specifically to Bitcoin. For altcoins, the market isn’t yet sure if it should be having doubts.