Home Cryptocurrency News Bitcoin Bitcoin plunges again

Bitcoin plunges again

6 min read
0
122


Wang
He/Getty Images

Bitcoin has found itself on the end of another vicious sell-off,
adding to the substantial losses this week.

Just check out the 5-minute chart below revealing the wild price
price action seen late Thursday night:

BTCchartBitcoin 5-minute
chart.
Investing.com

After hitting a record high of nearly $US20,000 just a few days
ago, the world’s largest cryptocurrency by market capitalisation
fell to as low as $13,300 before rebounding back to around
$15,000.

It tested this level twice but found buying support on both
occasions, as seen in the chart above.

At the lows, it had lost a third of its value from the record
high struck earlier this week, falling more than 14% for the
session.

Unlike more regulated markets like stocks, bitcoin does not have
“circuit breaker” rules that halt trading in significant selloffs
to avert full-blown panics. Large falls followed by significant
gains are common in the bitcoin price action.

However, after its all-time high at the start of this week,
recent days have seen sell-offs pause for short recoveries before
the price falls resumed again.

Chris Weston, head of research at IG Markets in Sydney, said the
move appeared based on no particular news and looked “herd
driven”.

“If people feared missing out on the way up, the idea you can
actually lose money is also a new emotion and people are getting
out of all cyrptos at the same time,” Weston said. “Wealth
preservation time,” he added.

Unusually in the cryptocurrency space, the fall does not seem to
be confined to just bitcoin.

As seen in the scoreboard below, it’s not just Bitcoin that is
under pressure. Most major cryptocurrencies are getting hammered
with the exception of Ripple which has jumped by a remarkable
60%.

crypto scoreboardInvesting.com

According to Alexey Ivanov, CEO and co-founder of Polynom Crypto
Capital, a Moscow-based cryptocurrency and blockchain investment
fund manager, the surge in Ripple appears to have been driven by
strong demand from Asia.

“Asians are going mad for Ripple,” Ivanov said in an interview
with Forbes.

Trading volumes in South Korea and Hong Kong were well above
normal on Thursday, perhaps driven by an announcement from the company earlier in the
week that that a group of 61 banks in Japan, organised by SBI
Ripple Asia in Tokyo, will launch a new digital payments systems
pilot program with Woori Bank and Shinhan Bank of South Korea
using the Ripple blockchain network.

“People feel comfortable with its name and the technology behind
Ripple,” Trevor Koverko, CEO of Polymath, a blockchain platform
for startups looking to launch their own cryptocurrencies, told
Forbes.

“A lot of people are beginning to realise how big of an
opportunity there is between business and the blockchain…and
that’s making Ripple the early winner here.”

You can read more here »

Get the latest Bitcoin price here.>>

EXCLUSIVE FREE REPORT:
The Bitcoin 101 Report by the BI Intelligence Research Team.
Get the Report Now »

Read the original article on Business Insider Australia. Copyright 2017. Follow Business Insider Australia on Twitter.

Let’s block ads! (Why?)


Source link

Leave a Reply

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

Check Also

Cryptohomie Who Spent Almost $150,000 on Altcoins Sees 85% Loss

A crypto enthusiast who took out a six-figure loan to purchase cryptocurrencies has seen t…