Bitcoin (BTC) Abandons Stability with Rapid Crash
Bitcoin (BTC) erased nearly $400 of its price, crashing within hours to a lower range.
Bitcoin (BTC) abandoned its stable levels around $10,200, crashing within an hour early on Thursday. In the early hours, BTC crashed toward the $9,800 range, erasing 3.7% from its price. Selling pressures increased volumes to around $17 billion’s equivalent in 24 hours.
The BTC market cap dominance is near its usual levels at 67.8%, as altcoins slid as well. Except for a few anomalies, most of the market is down, especially true of the most liquid coins and tokens.
This type of behavior has been observed multiple times for BTC, when appreciation or a slide happen within hours. This time, the slide is relatively small, as BTC has erased more than $1,000 in these types of flash-crashes.
One of the possibilities is a sale from the wallets of PlusToken, as a recent large transaction of BTC was noted in the past days. The PlusToken scheme crashed when its founders had amassed $3 billion’s worth of digital assets, with significant BTC holdings still waiting to be sold. The activity of “whales” still sways the market significantly.
It is also possible that the current BTC slide is just a blip on the radar, part of the general sideways movement. BTC has shown capable of also recovering within days or even hours. Still, the current slide renewed expectations of sliding to $9,500 and subsequently, to $8,500.
Another reason for the BTC slide is the unexpected strength of Ethereum (ETH). BTC also suffers from automated trading and a prevalence of short positions, betting on a slide after a period of stability. Others are more optimistic, seeing the slide under $10,000 as a short-term event:
Despite expectations that BTC may benefit from lowered Fed interest rates, the recent rate decision failed to achieve short-term results. BTC is currently defined by Asian trading, as seen by the timing of the market activity.
BTC remains highly unpredictable, with no guarantee of a more significant rally, either by the end of the year or later. BTC usually makes its dramatic gains within days, without predicting events except for increases in the supply of Tether (USDT).
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.