Cryptocurrency News

Bitcoin Price Sudden Fall – Excessive Sell-Off Is The Reason.

The price of the leading cryptocurrency Bitcoin [BTC] has fallen on the brink of $3k from levels on the brink of all-time highs within a fraction of time.

At around 2:15 UTC today, Bitcoin [BTC] began to tumble significantly as its price dropped below a previous area of support at around $18,400 USD.

Spot volume across leading cryptocurrency exchanges also rose sharply as bitcoin’s 24-hour range fell to between $19,400 USD and $17,210 USD – its sharpest decline in 12 weeks, consistent with CoinMarketCap. Today’s fall marks an over 10% drop over 24 hours.

“I think this is often a correction before we break $20k,” added Ki-Young Ju, CEO at analytics firm CryptoQuant. “Other long-term on-chain indicators like Bitcoin [BTC] as well as stablecoin reserve say the potential purchasing pressure still prevails thus far.”

While the reason for the drop isn’t entirely clear, the sell-off move arrives at a time when Coinbase’s CEO Brian Armstrong raised his concerns yesterday on Wednesday night over the U.S. Treasury Department’s rumored plans to aim to trace owners of self-hosted cryptocurrency wallets.

The plunge liquidated $950 Mln worth of positions across leading cryptocurrency exchanges, as added by derivatives data provider Bybt.

“The new BTC price drop is the primary of the many tests for new money on whether or not they have the vision and stomach to really invest in BTC and therefore the way forward for virtual finance, or if they’ll simply repeat 2018 and wash out of the market,” added Jehan Chu, co-founder, and managing partner at Hong Kong-based blockchain investment and trading firm Kenetic.

Along with the recent price fall of the leading cryptocurrency, other crypto-assets also fell sharply with Chainlink [LINK, -18.64%] and Cardano [ADA, -19.15%] suffering the worst drops across the board, losing over 18.5% and 16.5% respectively.

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