The outcome of the latest Greece crisis has probably made no difference. Grexit or no Grexit, euro or no euro, we have closure, at least for now.
Had Greece exited the euro zone, there probably would have been some more volatility in the markets. Greece’s economy would have gone from unproductive while wasting hard-earned European cash to unproductive without wasting hard-earned European cash (or even, perhaps, a lesson would be learned…). The new dawn of a Greece-less Eurozone would eventually have taken shape, and Europe could move on, no longer on the hook to funnel money into a bottomless pit.
Either way, the uncertainty underpinning crypto markets was going to end. Once it became clear that the all-night haggling bore fruit, bitcoin (BTC/USD) dropped by 8.5% to $281, wiping out most of its weekend gains.
The drop represents the third time in 2015 where bitcoin failed to tread water above $300 for much more than 24 hours, frustrating investors wondering when the much-awaited recovery will materialize.
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Bitcoin had come within 1% of breaking even for the year. It has yet to trade in positive territory in 2015.
Litecoin, which had appeared to find some temporary support around $5.00, resumed its slide. It is currently trading at $4.30. With the combination of last week’s bubble and the Greece rescue, further losses are likely.
Another sign of pending volatility is the price disparity between trading venues. Prices on BTC-e are 2% lower than elsewhere, the gap ranging as high as 3.5%.
Most other major coins are in the red by double digits.
Gold, whose gains throughout the crisis were unimpressive, fell to $1,155, challenging its lowest levels since 2010.