Massive Loss For Bitcoin, Will The Price Hold?
Today has been a bleak day for Bitcoin. The price looked like it was holding steady at the $6,500 mark but now it has dropped 5% which has dragged everything else down with it, including Ethereum, XRP, Cardano, Stellar and more.
In only 30 minutes, $13 billion disappeared. According to CoinMarketCap, data shows that the sudden slide for Bitcoin / USD took the pair down over $400 in just a half an hour window which seemed to start at around 11 pm on October 10th.
By 12 am, Bitcoin had resulted in a $470 crash and was worth around $6,090 however, it managed to sustain support to keep trading above the $6,000 barrier.
There are hundreds of theories as to why this crash happened. Several analysts have been running all over the internet trying to find a cause for this sudden drop impacting the market.
Twitter account with the handle âWhale Alertâ noted that during his time, a transfer of more than 15,000 Bitcoin to an unknown wallet in just one transaction which has sparked suspicions about the market manipulation.
Another theory has looked at the current stability of the stock market and specifically focusing at Japan as traders tried to cover their positions, Bitcoin has previously reacted to spells of unpredictability in the traditional markets.
In response to a recent tweet by the Bloomberg tech reporter, Yuji Nakamura saying:
âCrypto getting spanked this morning in Asia. Hearing that Japanese day traders are leading the move lower, selling crypto to pay for unexpectedly big margin calls in stocks. Question is will Bitcoin @ $6,000 hold?â
The analyst, Tone Vays (over 165k followers) responded saying:
âVery Interesting but makes sense. I've said for years #Stocks & #Bitcoin are positively correlated as they are both Private Assets. #Gold Bugs always want stocks to crash but are still clueless why $Gold fell 33% in '08
"People Sold #Gold to Put Food on Table" $BTCUSD ---> Lowerâ
Ethereum is the biggest altcoin asset by market cap, which is more than doubled in Bitcoinâs losses to shed over 9% of its value at the time of writing, bringing it to $205.
Ripple is the second biggest altcoin and Bitcoin Cash is the third, however, they both didnât come off well as they lost around 11% in the markets.
What are your thoughts? Do you think the price will hold, drop or rise again? Let us know what you think down below in the comments!