Bitcoin has taken a nosedive. At the time of writing, 1 BTC is worth $59,000. This means it has fallen below the psychological barrier of $60,000.
Bitcoin price drops again
The price of bitcoin fell below $60,000. It even fell to $57,800. And that was on high volume. At the same time, there was a sudden rebound. Also on high volume. It is possible that at the time of writing this, the market has already drawn a bottom.
The price has fallen by 3.7% since yesterday and by 3.2% on a weekly basis.
At the same time, Ethereum continued to decline. 1 ETH currently costs $3,229, which means a correction of 4.3% in 24 hours and 4.5% on a weekly basis.
The situation on the chart looks similar to BTC. Ether may have a bottom behind it.
In both cases, the market’s confirmation that “it can’t go any lower” could be the drawing of a double bottom.
Did something bad happen?
Especially less experienced investors ask themselves at such moments whether something bad happened and why the bitcoin price is falling.
There is nothing scary to be seen when browsing cryptocurrency news sites. All we have known for a few days now is that bitcoins, which have been frozen on Mt. Gox for a decade, will be returning to the market. These are coins worth around USD 9 billion. However, they will not reach the creditors of the bankrupt exchange in one go. The payments, which are being made by the trustee, are being divided into stages. It is also doubtful that all former Gox customers will sell these bitcoins. Some of them will continue to be held. In addition, there are spot BTC ETFs on the market that will “eat” the potential surplus.
In summary: nothing bad happened that should worry investors. The current declines are just a correction, clearing the market before the next increases, which – if the cyclicality of bitcoin works again – should start in the last quarter of this year.
The above text does not constitute investment advice.
