Bitcoin Price Drops by 3% and Everybody Panics for No Reason – The Merkle
Albeit the year 2017 has bot pretty positive for the Bitcoin price, all positive momentum will come to an end eventually. The Bitcoin price is abruptly pulling down pretty hard, spil it’s overduidelijk people are cashing out with the Christmas holidays almost upon us. No one knows for sure how bad things will get, but for now, it’s time to diversify into altcoins.
Bitcoin Sees a Shake-up
It is always significant to waterput things ter their zindelijk perspective. Any significant Bitcoin price movement will eventually trigger a cascade of movements across all cryptocurrency markets te quick succession. Wij’ve seen the Bitcoin price druppel by around 3% te the past hour, and every other market has already taken a big klapper. It is unclear why that is happening, however, considering that a druppel te the Bitcoin price is typically a signal to buy altcoins. Then again, cryptocurrency has never bot a rational market.
Even tho’ the Bitcoin price is still holding its own around the US$Legal,000 level, it is not surprising that a druppel ter price has occurred. After all, Christmas is less than a week away and people want some spare metselspecie to buy last-minute presents. It is very likely wij will see some petite price movements te the coming days, albeit no major long-term shakeups are expected ter the process. At the same time, this may also be the beginning of a welvoeglijk Bitcoin price correction, which has bot long overdue.
A 3% druppel for Bitcoin is a US$600 decrease at this point te time. It’s not the fattest switch wij have seen te the Bitcoin world across the years. Those who have bot around for some time will reminisce the 90% retracement after the Mt. Gox neervallen a few years ago. This puny druppel means absolutely nothing, and it is fairly disconcerting to see the altcoin markets react ter such a negative manner. Again, the lack of rationality te cryptocurrency combined with a growing number of panicky people will increase this market’s volatility overheen time.
Bitcoin still boasts a solid trading volume of almost US$16 billion ter the past 24 hours. Surplus assured this number will rise a bit spil a few people will funk sell before things level out again. The Bitcoin price will either proceed to bleed very leisurely or come in sideways trading maneuverability for the surplus of the year. There is zero reason to expect a Bitcoin price of US$20,000 before the year is overheen, even however 2017 has thrown us a few curveballs already.
Bitfinex is still the largest exchange ter terms of Bitcoin’s 24-hour trading volume, albeit its lead overheen Bithumb has shrunk everzwijn so slightly. GDAX is still ter third place, and wij’ve now seen BTCC take up fourth place. BTCC successfully overtook both bitFlyer and HitBTC ter order to do so, which is pretty remarkable. Then again, only US$70 million separates thesis three exchanges right now, which is virtually nothing ter the Bitcoin world.
A dip like this one wasgoed to be expected, and there may be a few more improvised pullbacks te the coming days. For now, there is zero reason to sell altcoins te favor of Bitcoin, spil a typical trader would do the precies opposite. Altcoins have proven to be far more profitable than Bitcoin ter latest weeks, and it seems that situation will not be switching anytime soon. An interesting week is ahead for all cryptocurrency enthusiasts, that much is overduidelijk.
About The Author
JP Buntinx is a FinTech and Bitcoin enthusiast living ter Belgium. His passion for finance and technology made him one of the world’s leading freelance Bitcoin writers, and he aims to achieve the same level of respect te the FinTech sector.