Altcoins moved into the red today after generating substantial gains in the last couple of days. The traders are blaming profit-taking-strategies and a bearish environment in the stock market for the potential selloff. The majority of altcoins are retreating at a double-digit rate today.
The stunning bull-run in altcoins lifted their prices to the highest level in the last few months – which is allowing short-term investors to capitalize on gains. Some of the altcoins including Bitcoin Cash (BCH), EOS (EOS), and Populous (PPT) has posted price appreciation of more than 100% since the start of this month.
Altcoins Tumble at a Double-Digit Rate
Bitcoin Cash leads the selloff. BCH price plunged almost 16% today after hitting three months high on Tuesday. Stellar (XLM), IOTA (MIOTA) and NEO (NEO) are plummeting at a double-digit rate today. Ethereum (ETH) and Ripple (XRP), the second and third largest cryptocurrency, pull back 10% in Wednesday trading.
Market pundits say the bearish trend in U.S. stock markets is contributing to the altcoin retreat. The top three U.S. indices dipped sharply on Tuesday, and they are extending the decline into Wednesday trading. Increasing interest rates and the potential deterioration in economic growth are looming on investor’s sentiments.
Lower than expected earnings performance from large caps continue dropping trader’s confidence in financial markets.
The Market Trend Remains Upbeat
The market trend remains upbeat despite the selloff. Reports suggest an increasing trader optimism in cryptocurrency markets. Reuter’s data shows one in five investors wants to invest in cryptocurrency markets this year. U.K. and European regulators add to traders sentiments – traders believe U.K. based Barclay’s partnership with Coinbase signals softening stance.
“After nearly a decade of mainstream media nay-saying, condemning and outright misleading the public about Bitcoin, the immutable and transparent truth of blockchain is coming to light,” analysts say.