Theta dropped off a cliff today, but that seems to be a response to the entire market being down today. Cryptocurrency Theta fell 11.10% to $6.31 (THETA/USD), but it’s not the only crypto to get hit hard today.

Bitcoin is also down (5.09%) to $58,975 (BTC/USD), and Ethereum dropped as well (3.68%) to $4,006 (ETH/USD). These numbers are changing rapidly as the major crypto tokens still have a lot of trade volume at the moment, especially in response to the market drop.

What Happened to the Market?

We predicted a drop for the market based on how cryptos like Ethereum, Bitcoin and Theta have been doing lately. Their recent hot streaks seemed unsustainable, and it looks like investors agreed. Bitcoin recently passed a new all-time high, and that’s likely why investors are spooked. Very few analysts expected Bitcoin to keep going much higher than that, and there were a lot of predictions floating around that the market was headed for a bubble burst. Crypto is just so volatile that its record highs are not sustainable for very long. They inevitably fall, as they did back in April with the major market crash then.

Smart investors already pulled out before this morning’s drop, seeing the writing on the wall. Trade volume is up 40% for the market as a whole since yesterday, indicating a lot of activity, but much of that is from investors cashing out.

Usually, when cryptocurrency sees a major drop like this, it’s because there is a change in regulations or a major new announcement related to cryptocurrency. We saw that happen when China issued a ban on Bitcoin mining and then cryptocurrency as a whole a few months ago. We have also seen that when new regulations are released by major governments, but there is nothing like that related to this massive drop. It is simply a symptom of the crypto price going too high and investors getting scared and pulling out before the price turns around. As they cash out in droves, the market price plummets, creating a self-fulfilling prophecy.

How Is Theta Doing?

Theta’s trade volume is up over 105%, with a volume of more than $607 million. That’s obviously a ton of activity of the #33 ranked crypto coin, and it is likely to settle down soon.

Over the next couple of days, we will probably see a lot of activity for Theta and other cryptocurrencies above it in the rankings. Once the price starts to settle, it may end up close to the $6 level and then will probably work its way back up by next week. The Theta rate is not likely to recover back up to yesterday’s $7.36 high anytime soon, as the entire crypto industry saw some of its best ever rates recently. These high rates are flukes right now rather than signs of a stable, permanently healthy market.