0 0

December 09, 2020 at 08:50AM

Bitcoin has fallen precipitously in the past few hours and is testing a key level of psychological support near $18,000. At around 06:00 UTC on Dec. 8, the price of the world’s first cryptocurrency fell to around $18,031 from $18,770. It subsequently retraced slightly to $18,200 by press time, according to CoinDesk’s bitcoin price index.

The last time bitcoin (BTC, -6.30%) experienced a similar drop was on Dec. 1 after the bellwether cryptocurrency reached an all-time high of around $19,920, per the BPI. According to Ki Young Ju, CEO of CryptoQuant, the availability of sizable amounts of bitcoin on exchanges provided by large holders – “whales,” as they are often called – contributed to the price drop.

“When it comes to short-term price prediction, I think the most important data is supply and demand, said Ki Young Ju, CEO of CryptoQuant. “I think this plummet was started from bitcoin…whales who wanted to keep their bitcoin on exchanges making them readily available for sell orders.”

Others see recent buyers taking their winnings out of the market. Lucas Huang, head of growth at decentralized exchange Tokenlon, noted that from a retail trading perspective, “an 80% increase in bitcoin price over only two months might be a profit too tempting not to take.”

Meanwhile, another signal may be coming from how Wall Street views the prospects of one particularly large buyer in recent months. Tyler Radke, an analyst at Citibank, downgraded his recommendation on business intelligence firm Microstrategy to “sell” from “neutral,” flagging to investors bitcoin euphoria might be overextended.

Other notable cryptocurrencies are also suffering, including ether, XRP (XRP, -13.85%) and litecoin (LTC, -10.52%). Those three are down between 7% and 9% in the past 24 hours as well. In fact, all 17 free-floating cryptopcurrencies besides bitcoin in the CoinDesk 20 have dropped between 6% and 12% in the past day.

Meanwhile traditional markets have held steady on the day with the Dow Jones Industrial Average closing 0.35% in the green and the S&P 500 index up around 0.28% on the day.

Bitcoin Price Drops $1,000 in Worst Sell-Off in a Week, CoinDesk, Dec 9

Continue Reading…

From: The FxPro News Team https://fxpro.news/daily-forex-outlook/bitcoin-price-drops-1000-in-worst-sell-off-in-a-week-20201209/
Selected by fonecable.com

euro
Search Web: Bitcoin Price Drops $1,000 in Worst Sell-Off in a Week

Recent Posts

euro

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

Related Listening

December Reports

November Reports

October Reports

September Reports

August Reports

July Reports

Average Rating

5 Star
0%
4 Star
0%
3 Star
0%
2 Star
0%
1 Star
0%

Leave a Reply

Your email address will not be published. Required fields are marked *