Recent run ups in Bitcoin, Ethereum, and other altcoins have been substantial. Bitcoin briefly crossed the $5,000 mark, followed by an 8% pullback. Ethereum almost made it to $400 but ran out of steam and promptly dropped 18%. Litecoin also had a great week, but stopped just shy of $100 before reversing course back into the $80s. Dash managed to just make it to $400 before dropping 20%.
Tuur Demeester, Editor at Adamant Research, pointed out that a number of currencies retreated from psychologically significant dollar amounts.
Cryptocurrencies pull back today, just at psychological price levels:
— Tuur Demeester (@TuurDemeester) September 3, 2017
BTC $5,000 / ¥30,000
ETH $400
LTC $100
XMR $150
ZEC $300
DASH $400
Mainstream acceptance, fear
The market for cryptocurrencies is showing the substantial influence of widespread awareness. As mainstream investors, hedge fund managers and the public get acquainted with and invest in crytpocurrencies, substantial increases should be expected.
However, the reality that the prices of most of these coins has increased thousands of percent over the last year remains in the minds of most. As with any large scale increase, the price will likely stabilize for some time before investors and the public feel enough confidence to continue increasing positions.