Digital Asset Market Shrinks 5% on Monday, BTC Heads Back to $3,500
Led by the Bitcoin (BTC) decline, all assets returned to lower valuations.
BTC slid to $3,576.50 as of 9:00 UTC, wiping out the gains from Saturday’s rally. Volumes remained relatively high above the equivalent of $5.5 billion in 24 hours, with suggestions of market manipulation.
BTC prices once again sparked doubts by following a pattern of rapid spikes followed by a crash a few days later. Analysts have commented on the “Bart Simpson” chart pattern, where Bitcoin’s resembles the hairstyle of the famous cartoon character. Most believe this trading pattern is caused by a concerted effort to boost BTC prices.
Altcoins were also hurt but mostly based on the price of BTC, which sank by about 4.7% in the past 24 hours. Separate coins and tokens that staged previous rallies went on to crash a bit more, by 7% to 9%. Still, the sell-off is seen as temporary.
The slide in BTC prices coincides with the large share of Tether (USDT) trading. The BTC/USDT pair once again accounts for more than 60% of all trades. USDT also increased its influence to above 24% of all digital asset trading.
BTC entered a period of relative stability around $3,600-$3,800. However, there are expectations of further selling, especially after the launch of the Bakkt exchange was delayed until the start of the second quarter. Additional pessimism, as well as Bitmain’s initial public offering results around February, may steer the market to an even more pessimistic mood.
At the same time, the Tether treasury is down to 466 million USDT, suggesting that the added liquidity may preserve BTC positions when it flows into the market. However, Bitmex derivatives trading may also be hurting spot BTC prices, potentially helping the slide to become a self-fulfilling prophecy.
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.