In the previous week, the market capitalization dropped significantly by 6% and this affected the cryptocurrency market negatively. Most of the tokens went down in value but they have started recovering. Others have not started yet as altcoins have shown. A researcher shares his reasons why this is happening below.
Pressure In China Is The Leading Factor
Chris Martin reports that the external pressure that China is facing could be the main factor that is contributing to the drop in the value of the altcoins.
He adds that Singapore and Hong Kong are the main channels for opportunities in Asia. At this point, however, he does not see the bull market conditions prevailing as he had earlier anticipated due to an economic turndown.
He hinted that Bitcoin and Ethereum are more worth investing in but they have also faced major falls in their prices over the past week.
Martin’s Take On Altcoin Volatility
Going further, Martin said that the volatility of the altcoins is more prominent compared to that of the Bitcoin and the Ethereum tokens. The volatility of these tokens can easily go down if more financial institutions continue to apply for spot ETFs and derivatives.