Bitcoin (BTC) Dips Deeper Under $8,000
In another flash crash, BTC prices revisited the $7,900 level, deepening fears of another bearish period.
In another flash crash, BTC prices revisited the $7,900 level, deepening fears of another bearish period.
Bitcoin (BTC)seeminglysankwithout clear reasons, as volatility returned with a strong downside. BTC fell to lows of $7,895.63, later recovering to $8,051.63, with relatively robust trading above $19 billion’s equivalent in 24 hours.
There is no single opinion on what triggered the drop in prices, though the losses were exacerbated by the large BTC derivatives markets on several exchanges. With increased volatility, liquidations lead to immediate losses.
In the meantime, the new lowered prices led to increased interest in the Bakkt exchange for futures trading. Bakkt traded 71 BTC on its first day, and afterwards volumes dipped to a lower range. The exchange is still in the phase of price discovery, and may be affecting the BTC sentiment.
https://twitter.com/SumitNa71305745/status/1176804199452925953
The BTC fear and greed index fell to lows of 17 points during the sell-off, but recovered to 24 points. The sentiment is still in the “extreme fear” index, down from a peak of 95 points in the “greed” range in June.
The recent drop in price for BTC was relatively rare, especially for the general trend to stability and a gradual climb in 2019. But the coincidences of several events raised doubts that BTC prices can be controlled.
https://twitter.com/HoldingsPea/status/1176890258933342209
The Bitcoin hashrate fell suddenly, seemingly unrelated to the prices. At the same time, increased transaction activity was noted ahead of the sell-off, with the potential of whales moving coins to exchanges to sell.
The BTC market is still highly dependent on Tether (USDT), as 62% of all BTC pairs are against the stablecoin. Now, traders are watching for increased USDT activity and other signs of market inflows. For now, the supply of USDT remains unchanged, while Tether, Inc. is still busy replacing Bitcoin-based USDT with Ethereum-based tokens.
In the past day, multiple transactions of 600 to 1,000 BTC were noticed, ending up on some of the most active exchanges.
https://twitter.com/whale_alert/status/1176966655236333580
The Plus Token scam may be the culprit, as well as other whales willing to cash out or push the price downward.