Bitcoin (BTC) Heads Downward to Sink to $6,300

A big market move within minutes wiped out the positions of both BTC and altcoins, sparking fears of spiraling losses.

Bitcoin (BTC) drifted sideways for about three weeks, hovering near the $6,500 level until another sudden shakedown pushed it downwards. As of 1:00 UTC on Thursday, BTC had crashed within minutes from around $6,550 to $6,310.55, with the potential to unravel further. The move happened on relatively high volumes of $4.5 billion in 24 hours.

Some saw the slide in price as a capitulation event:

The sudden plunge is seen as taking BTC much lower instead of seeking a price breakout. Altcoins also suffered, with Bitcoin Cash (BCH) becoming the greatest loser in the top 10 by sliding to $457.67. Ethereum (ETH) once again threatens to fall below the $200 level. Smaller altcoins are all in the red except for separate cases of a pump. However, the sudden downturn is also wiping out the gains of those rare pumps.

In the past days, expectations weighed heavily on Bitcoin as the downturn was seen as taking the coin back down to $5,000. The levels of around $6,000 are viewed as key since they are important to the current mining economics. At the same time, attitudes toward BTC are negative, with a Juniper Research report published this week predicting an unraveling of the crypto space.

Bitcoin and crypto assets are also getting negative mainstream attention. Nouriel Roubini, the prominent economist known as “Dr. Doom”, will testify before the US Senate Banking Committee tomorrow, and he will not be saying good things:

It is possible that the hearing sparks fears of tighter regulations and further loss of trust in cryptocurrencies.

Just as Roubini prepares to expose wash trading and spoof practices, the crypto community has also noticed the attempt to pump prices on YoBit in a concerted effort to draw traders to the exchange.

One more worrying sign for the crypto market is the continued attempts to sell millions of Tether (USDT) on Kraken - the only exchange that allows selling USDT for dollars. Selling there continued in the past day, depressing the price of the dollar-pegged coin to $0.98. USDT trading has accelerated in the latest downturn, accounting for over 21% of all crypto trades. At the same time, more BTC are sold for USD and not USDT, with the share of the BTC/USDT pair falling to a low of 38%, based on CryptoCompare data. This pattern shows that USDT is not seen as a safe haven in the latest sell-off.

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.