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Bitcoin, ethereum, Ripple’s XRP, bitcoin cash, litecoin and chainlink – the largest cryptocurrencies by market value – all fell dramatically after skyrocketing through November.
Bitcoin’s price lost $ 3,000 in hours yesterday, dropping more than 10% from nearly its all-time highs of nearly $ 20,000 per bitcoin, while ethereum, Ripple’s XRP, chainlink, bitcoin cash and litecoin, all saw retractions. similar.
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The sudden sell-off erased about $ 50 billion from the value of the world’s combined cryptocurrencies and left bitcoin and cryptocurrency traders fearful that a further decline could be on the way.
Bitcoin’s price lost over 10% in less than 24 hours after Ripple’s bitcoin, ethereum, XRP, … [+]
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Bitcoin’s massive rally in recent weeks, which began shortly after PayPal announced it would begin offering bitcoin buying and spending services, has seen the price of bitcoin climb around 60% to reach its all-time high in 2017.
Bitcoin’s bull run triggered a surge in the price of ethereum, Ripple’s XRP, litecoin and chainlink, known as alt coins, as investors rushed into the cryptocurrency space. Ripple’s XRP price has more than doubled in less than a week.
“For the past few days, the market was in a slightly feverish mood as it nervously waited to see if bitcoin would break through the magical $ 20,000 barrier,” Sui Chung, CEO of CF Benchmarks, a crypto index provider for CME and Kraken Futures, he said via email, indicating that bitcoin and Malta-based cryptocurrency OKEx resume withdrawals after a month-long hiatus caused by one of the key holders of the exchange held by Hong Kong authorities to “assist an investigation”, as exacerbating the clearance sale.
“Most of the frozen bitcoin had been trading around 70%, so there were a lot of unrealized profits stuck there,” Sui Chung said. “Once these coins have been free to move, many traders are likely to have sold them for dollars and stable coins to make those gains, adding more momentum to the sale.”
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Despite the sudden sell-off of bitcoin, many in the bitcoin and cryptocurrency community remain optimistic about bitcoin’s outlook, encouraged by a year that has seen bitcoin’s reputation as digital gold find new support and renewed interest from Wall Street and major investors. .
“The global macro environment has made bitcoin increasingly prominent as a potential hedge against the traditional banking and financial system,” Vijay Ayyar, head of Asia Pacific and Luno Exchange at Luno, owned by the Digital Currency group, told via email. .
“The narrative of bitcoin as a safe alternative to traditional finances is no doubt establishing itself. Gold is starting to become less relevant especially to the younger population and investors and this shift from gold to bitcoin has just begun.”
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The bitcoin bubble started deflating this week after ballooning to near-record levels.
Coinbase
Bitcoin’s rally to its all-time high was encouraged last week by a BlackRock executive
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“I think [bitcoin is] a durable mechanism that could largely take the place of gold? Yes, I do, because it’s much more functional than passing a gold bar around, ”Rick Rieder, BlackRock’s chief investment officer, told CNBC.
The bitcoin and cryptocurrency industry almost universally predicts that this latest recession will be short-lived, with many using bitcoin’s price trends in recent years as proof that the rally will resume.
“I believe this bullish run will continue, with bitcoin peaking at $ 30,000 by the end of 2020 and further gains are expected next year,” Philippe Bekhazi, chief executive of the payment platform, said via email. FX Stablehouse exchange.
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“We expect bitcoin to peak later this year at around $ 40,000,” added Chyna Qu, chief operating officer at DeFiner decentralized lending network, pointing to the planned cut in bitcoin supply at the start of this. year and the rise of decentralized finance.
“The more attention the industry gets, the higher the price of bitcoin, the more people want to get involved. All of this drives the price up constantly.”
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