Cryptocurrencies like Bitcoin and Ethereum can't catch a break today. These currencies, and most other major cryptocurrencies, continue a downward trend. In the past couple weeks, the market cap for all cryptocurrencies has dropped by billions of dollars. Bitcoin, Ethereum, and other currencies can't seem to find enough support to maintain a particular price range. Various factors contribute to this situation right now.
Cryptocurrencies Struggling To Maintain Their Value
As of May 25, Bitcoin has fallen below $7,500 with no signs of stopping. Ethereum dropped below $600, and the picture doesn't look great elsewhere. Litecoin, Bitcoin Cash, EOS, Ripple, and virtually all other cryptocurrencies remain in a downtrend. To regain these losses, a major rally will need to occur sometime in the near future. The bears continue to outtrade the bulls, though, so a rally isn't guaranteed.
United States Starts Investigating Market Manipulation
Recently, the United States government opened an inquiry into market manipulation of cryptocurrencies. Further regulation often scares investors, but many analysts see this move as a positive development. If the United States can identify market manipulators, then a rally and more steady prices are likely to follow. Small and major investors alike have assumed some level of market manipulation over the past few years.
Is A Rally On The Horizon?
The current downswing for cryptocurrencies shouldn't last too much longer. Most analysts assume a small rally will bring cryptocurrencies back to higher prices. Fortunately, more good news continues to hit cryptocurrencies rather than bad news. Although the markets remain stagnant, the optics for cryptocurrencies reveal a high possibility for the bulls to return to the market in force.
Such downturns tend to spook small cryptocurrency investors. Major investors often ride these highs and lows with strategic trades instead. In the end, the cryptocurrency market as a whole should reverse its course in the coming weeks or months. Most analysts expect improvement rather than a major decline in value for the largest cryptocurrencies. The market is always a few major trades and news stories from breaking out and going on a value-increasing run.
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