On Wednesday afternoon, and in just 30 minutes, the price of Bitcoin (BTC) dropped more than $ 600, falling below $ 10,000 USD for the first time in more than a month.
Despite the world’s largest cryptocurrency has risen almost 200% in 2019, it experienced a drop of more than 5%, going from just under $ 10,200 USD to be near $ 9,600; that drop happened between 17:50 UTC and 18:20 UTC. Since July, there had been no drop in Bitcoin below $ 10,000.
The catalyst for this sudden swing is still unknown. However, Jeff Dorman, Chief Investment Officer at Arca, believes it is due to low trading volumes. In addition, he noted:
“It‘s the week before Labor Day. Half of crypto is at Burning Man and the other half is doing nothing. The only thing I can point out is that the move was led by declines in altcoins and other high capitalization tokens that have been out of favor for months. ”
Altcoins also drop alongside Bitcoin
Besides Bitcoin, several major altcoins also registered a sharp drop in their prices today. Litecoin (LTC), Ethereum (ETC), EOS and XRP suffered decreases from 5% to 10%.
One of the possible causes of these drops could be the recent announcement by the Chinese government, who is planning to create its own cryptocurrency. This could mean the creation of a direct rival for Bitcoin, besides that it would force the main altcoins further down the pecking order.
On the other hand, yesterday some analysts considered that by the end of the year Bitcoin could hit the $ 20,000 USD mark, while for others this cryptocurrency will exceed that mark at some point in 2020. Now, if according to the data published by Skew on Twitter the odds of reaching that milestone were 7%, it’s highly possible that those odds have decreased today.
Source Link: https://cryptocurrencynews.com/bitcoin-btc-08-28-19/