The past month has been devastating to the entire cryptocurrency market, but some coins are faring far better than others.
Considering one of the main catalysts for the market downturn was the Bitcoin Cash hash war, it’s not surprising that the BCH network has been worst hit, with 66 percent losses in November. Ripple’s XRP cryptocurrency, on the other hand, is weathering the storm best with only a 24 percent decline.
As prices continue to slide into December, many analysts are questioning when the market will bottom out. Only a few weeks ago it seemed unfathomable that Bitcoin would drop below $4,000; now talk of $3,000 and even $2,000 is becoming commonplace.
After a brief sign of recovery last week, the market crashed again this weekend, wiping between eight to nine percent of value off most coins. Bitcoin lost support at $4,000, and Ethereum is struggling to hold above $100. Other than XRP, Stellar (XLM) is also faring strong, having taken over the fourth position by market cap from Bitcoin Cash.
Atulya Sarin, a professor of finance at Santa Clara University in the U.S, believes Bitcoin has entered a ‘death spiral’ and is on route to becoming worthless. General sentiment amongst blockchain industry professionals, however, remains positive. This is not the first time the cryptocurrency market has dropped by such an extreme degree before recovering stronger than ever.
Billionaire investor Jim Breyer notes that while he is optimistic about blockchain and the cryptocurrency market in the long term, he believes we could be in for a ‘nuclear winter’ – an extended bear market that only the strongest investors will survive.