Today’s most popular cryptocurrency, Bitcoin (BTC), fell below the USD30,000 threshold for the first-time since January. However, it rebounded sharply. Updated at 16:28 UTC using the most recent market data. (
BTC fell to USD 29,150, and it took approximately two hours for USD 32,000 to recover. BTC trades at USD 32.423 UTC and has almost remained the same day. The weekly decline is almost 20% and the monthly decrease of 12% respectively, bringing its annual gains down to 251%.
Other cryptoassets on the top ten list have also seen a sharp rebound, but they are still in red today with a drop of 3% to 12%.
Alex Siman, the founder of Subsocial a platform for decentralized social networking, called this price drop “a small miracle.” In an email comment, he stated that the reason for this fall in price is because of “the wider market resistance from ongoing clampdown crypto-related activities China is not preventing crashes.”
“At this rate, it’s hard to predict when the price will establish a baseline for an imminent rebound. Big investors who have the potential to reverse the prices are choosing not to look. We can see a positive trend before the year ends, but steeper plunges to USD 20,000 are not surprising to me.
Tim Frost, the CEO of fintech app YieldApp, stated that we might be at “an inflection moment” with crypto regulators. He also said that many have “finally realized just how popular and powerful this asset class is.” Frost stated that instead of understanding and regulating it effectively using forward-thinking policies Frost claimed, they are “reacting in fear with bans.”
This, along with the general downbeat sentiment, appears to indicate a bear market. He suggested that sensible investors would be well advised to look for a stable passive income opportunity for crypto while they wait out the storm.
Coin Metric, an analytics firm, stated today that Binance’s BTC holdings have risen to new heights in the past month.
Binance now has more BTC than any other exchange we cover. They said that although there are many factors involved, the increase in BTC is most likely due to investors shifting their BTC from Chinese exchanges to Binance. Binance is not officially located in China.
Bloomberg was told by Matt Maley, Miller Tabak + Co. Chief Market Strategist, that any significant break below USD30,000 would cause “a lot of momentum player to throw in the towel.” So, “even though bitcoin is going to transform the world over time, it doesn’t mean it can’t fall back to the teens over short-term.”