Bitcoin (BTC) Abandons $10,000 Price Tier in Flash Crash
Within hours, the leading coin, pressured by negative comments about potential regulations, wiped out nearly $1,000.
Bitcoin (BTC) slid this Tuesday, crashing by around $1,000, to continue the trend of distancing itself from the year’s peak prices. BTC had stabilized and even crept up to the $10,700 range before a flash crash took it down to $9,733.28. Hours later, BTC continued to sink and traded at $9,425.32.
BTC is now in bearish territory, and the predictions for a slide to the $9,000 range were fulfilled. BTC prices fell under their 200-day moving average, suggesting the potential for a further slide. What is more, volumes fell down to $17 billion’s equivalent, about three times lower in comparison to peak activity.
The most recent flash crash arrived on the day that Calibra’s David Marcus was delivering his testimony to the US Congress Banking Committee. But the price drop was already in the making a few days ago, when BTC abandoned several price ranges and moved down more than $1,000 within a short trading time span.
Altcoins suffered even more, as Ethereum (ETH) threatens to fall below the $200 mark. The latest sell-off took ETH down to $204, with predictions of an even steeper price drop.
The latest flash crash wiped out more than 30% from leading coins and more than 40% of the price of Bitcoin SV (BSV) in just the last few trading days. The series of sell-offs are dashing hopes for new highs coming in the summer. For digital assets, 30% retracements are not unusual, but this time, after six months of recovery, the crash is threatening to bring back the bear market.
To support BTC, the supply of Tether (USDT) is growing and is now more than 3.95 billion. The tokens are instrumental to the BTC liquidity, with about 59% of all trading happening against the stablecoin.
BTC year-on-year returns are still robust at 62%:
https://twitter.com/ceterispar1bus/status/1150725329947889670
However, altcoins have lost more than 56% of their value in BTC terms, and some in dollar terms as well.