Bitcoin (BTC) Goes Parabolic Above $13,000, Wipes Out Gains Soon After
The sudden slump of BTC prices by more than $1,000 caused an outage at Coinbase due to increased selling demand.
Bitcoin (BTC) is now up more than 300% since its lows in January at around $3,200. The price went parabolic late on Wednesday, gaining all day to above the $13,600 range. But just within an hour, BTC showed its notorious volatility and wiped out more than $1,000.
BTC peaked at $13,796.39, only to crash toward the $12,600 range in a flash-sale. The leading coin traded at $12,706.65 as of 7:25 UTC on Thursday, on slightly lowered volumes of $17 billion’s equivalent. The dominance of BTC over the entire market rose to 62.8%, pushing down altcoins, which keep unraveling or at least lagging behind.
The selling pressures did not abate, and BTC pushed down to the $12,300 range within less than an hour, fulfilling the predictions that the rise will not continue without deep setbacks.
The latest rally to above $13,700 also caused selling pressures, pushing the Coinbase brokerage service over the brink. The site closed for an hour late on Wednesday following the flash crash. Prices on Coinbase sank even lower than the general market, wiping out gains from the $13,800 level down to lows of $11,900.
The recent BTC rally saw volumes concentrate on Asian exchanges, but Coinbase remains one of the fiat off-ramps for realizing profits. The robust growth since the start of 2019 may have driven some buyers to attempt to sell immediately. During the current rally, the share of USD trading is rising, to above 22%, based on CryptoCompare data. The share of Tether (USDT) trading is down to 56%, from peaks above 84% a few weeks back. The ratio may signify a return of cash investors or sellers.
Another indicator of cashing out is the behavior of Gemini Dollar (GUSD). As BTC started climbing to new highs in the past quarter, more GUSD were destroyed, shrinking the supply from above 66 million coins to just 17 million, with 3 million coins destroyed in the past week. GUSD is the coin most affected by this form of cashing out. Other stablecoins keep most of their supply.