Why Did Bitcoin Drop Today?
Oct 29, 2018
Earlier today, the crypto markets were seeing the first bit of momentum in a while after a period of market stability. Essentially, all the big players in the digital currencies space saw the colour red today with some seeing losses of up to 6%.
Bitcoin is currently trading at $6,348 at the current time of writing with over a 2% drop over the past day. Even though it was trading sideways for the majority of last week, the leading cryptocurrency saw a significant price drop after being priced at around the $6,480 area.
Earlier in the month, Bitcoin had seen a 17-month low volatility rate, recording its highest level of stability since the middle of last year. The trend had continued over the recent weeks excepting one short-lived spike in the middle of October.
Prominent faces in the industry quickly commented to underscore Bitcoin’s new quasi-stablecoin status. A senior market analyst at eToro, Mati Greenspan jested last week saying: “Hey stock jocks!!! Tell me again how Bitcoin isn't a stable store of wealth due to extreme volatility.”
As the market returned to normal momentum, Tuur Demeester the founder at Adamant Capital went to Twitter to say that “is there a way to go long Bitcoin volatility? I would if I could.”
As stated by Cointelegraph:
“On the week, the crypto is now around 2.7 percent in the red: monthly losses are at around 3.4 percent.”
Similar patterns were seen by Ethereum today too with a negative momentum, slowly dropping down 3% on the day to trade at about $197 at the time of writing. Over the past week, the second biggest coin in the market has also been trading sideways, showing only marginally more fluctuation than Bitcoin over a similar time frame.
Basically, this brings Ethereum to a 4% loss on its weekly chart when monthly losses are much more significant over around 15%.
Tether seems to be one of the few that is trading normally, as a stablecoin would but the rest of the market is seeing red.
Litecoin had the biggest impact with a 5% drop to trade at around $49. Bitcoin Cash is down by about 4% at the current time giving it a price of around $418.
What are your thoughts? Will this slump in the market last? Let us know what you think down below in the comments!
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