Here’s Why Bitcoin Plunged 10% After Rallying Past $8K

Here’s Why Bitcoin Plunged 10% After Rallying Past $8K
фото показано с : blokt.com

2019-5-17 15:19

Bitcoin’s rally past $8K has come to a halt. The world’s largest cryptocurrency (by market cap) lost about one-tenth of its value in a matter of hours earlier today and is currently trading in the lower-$7000s (Around $7,100 as of press time.)

However, as of now, it looks like the broader market sentiment remains positive despite the fall. The optimism is presumably due to the fact that the overall interest and investment in the asset class continues to expand regardless of temporary setbacks.

Furthermore, there’s a growing feeling that Bitcoin is maturing fast as an asset, which further adds to its charm as an investment choice. (Bitcoin is already the best-performing major asset so far in 2019.)

What Caused Bitcoin to Plunge to the $7000 Mark

The cryptocurrency community worldwide was dumbfounded earlier this week to see Bitcoin suddenly rallying past the $8K mark. The sudden surge from the low-$7000s started on the latter half of May 13 and it went straight past $8000 on the next day.

The price remained more or less stable (with occasional bumps along the way) for a couple of days before taking a nosedive to where it was before the rally began on May 13.

One possible factor leading to this plunge seems to be a massive sell order of 3,645 Bitcoins on Bitstamp at around 22:00 ET. The sale order could also explain the huge gap in BTC price on Bitstamp and other crypto exchanges like Coinbase.

It eventually ended up liquidating stop-loss positions in bulk, which then led to a sort of panic among many traders.

massive sell order at the front of BitStamp pic.twitter.com/RgOviG3a6p

— BTCVIX (@BTCVIX) May 17, 2019

Volatility Will Reduce With Increasing Institutional Investment

Jehan Chu, an eminent industry insider and co-founder of Kenetic Capital, a trading and investment firm focused on digital assets, agrees that the latest price drop could have been “caused by a combination of profit-taking and also algorithmic trading,” CNBC reports.

He added that the volatility in Bitcoin price is unlikely to go away until institutional investors increase their stake in the asset class.

Chu noted:

“The key takeaway from the past few weeks is that with each of these surges, the overall interest and investment continues to expand around a growing core of real blockchain use and adoption.”

Worth mentioning here that Bitcoin continues to exhibit a bullish outlook on a slightly broader time-scale. For example, it has spiked just about 40% month-on-month compared to the low-$5000s it was hovering around on April 17, according to coincap.io.

Here’s Why Bitcoin Plunged 10% After Rallying Past $8K was originally found on Cryptocurrency News | Tech, Privacy, Bitcoin & Blockchain | Blokt.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 67441.94 (+0.11%)
Объем 24H $26.984b
Изменеия 24h: -1.02 %, 7d: -2.99 %
Cегодня L: $67158.36 - H: $68812.85
Капитализация $1328.95b Rank 1
Цена в час новости $ 7248.18 (830.47%)

bitcoin past cryptocurrency plunged rallying market sentiment

Источник: blokt.com

bitcoin past → Результатов: 126


Фото:

Over Half A Billion Dollars In Crypto Liquidations As Bitcoin Traders Prepare For The Worst

Cryptocurrencies continue to face a turbulent week after Bitcoin dipped below $43,000 on Thursday, further worsening a situation that has been at play for over 2 months. In the past 24 hours, the total value of crypto futures liquidated went past $530 million according to Coinglass as Bitcoin fell further from $43,000 to $41,695. During […]

2022-1-8 22:58


Фото:

Bitcoin Flows Past Multiple ATHs To $46K; Elon Musk’s “It Was Inevitable” Now Makes Sense

Following the announcement of a $1.5 billion BTC investment by Tesla and likely making it possible to pay for Tesla cars using Bitcoin, the price has become untouchable. Bitcoin soared past $42k and quickly flew past new all-time highs at $43K, $44K, $45K to the current $46K and counting. The top coin has gained double digits […]

2021-2-10 16:09


Фото:

Bitcoin On the Cusp of Facing Another Wave of Intense Selling: Analyst

Bitcoin has faced some intense selling pressure throughout the past 48 hours, with bears stepping up and trying to reverse the cryptocurrency’s recent strength They have been continuously targeting $30,000, with the crypto tapping this level on a few occasions before rocketing higher Its rally has so far been somewhat weak, and reversed nearly the instant that the crypto moved past $36,000 This is a grave sign that points to some underlying weakness amongst bulls […]

2021-1-13 21:00


Фото:

Bitcoin May Need to Shed $2,000 and Tap Liquidity Region Before Rallying Higher

Bitcoin has been caught in the throes of an immense bull market over the past few days and weeks This has allowed its price to multiple over the past few months, racing from summer/fall lows of $8,600 to highs of $23,700 that were set yesterday morning The strength seen by the cryptocurrency comes as its macro-outlook brightens, with institutions and large banks warming to the technology Furthermore, there are already some signs of an imminent […]

2020-12-19 02:00


дальше еще 77 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

Possible BNB Chain exploit sees $80K in BTC lost

BNB Chain loses $80K worth of Bitcoin in potential exploit, raising questions about the attacker's identity and intentions as a possible white hat hacker. The post Possible BNB Chain exploit sees $80K in BTC lost appeared first on Crypto Briefing.

Bitcoin stuck in accumulation range, but a breakout is near

Trader Rekt Capital forecasts an imminent Bitcoin breakout from its current $60K-$70K accumulation phase, with altcoins also set to rally. The post Bitcoin stuck in accumulation range, but a breakout is near appeared first on Crypto Briefing.