Bitcoin price sprang to life this morning and crashed below $8,000
After weeks of mostly sideways movement, Bitcoin price sprang to life this morning, The original cryptocurrency’s price tumbled, dragging the rest of the crypto market along with it, and leaving a sea of red in its wake.
Among the top 10 cryptocurrencies, Ethereum (ETH), Litecoin (LTC), EOS and Binance Coin (BNB) are all down more than 8%, whereas Bitcoin (BTC) and XRP are down 5.8% and 4% respectively. The value of Bitcoin is rapidly changing, but currently sits at around $7,600—after briefly dropping to under $7,500 following a flash dump.
While it has baffled commentators, Bitcoin’s latest price movement is further proof that the cryptocurrency is not beholden to predictive indicators used in conventional analysis.
Looking at the top 30 cryptocurrencies by market capitalization (barring stablecoins), all except a single outlier are experiencing significant losses. As it stands, Tezos (XTZ) is the only cryptocurrency that has resisted the trend, gaining almost 4%—though this might not be for long.
The latest trough in prices has occurred in spite of positive developments throughout the industry, whether it is the entry of Facebook’s Libra, anticipation over next year’s halvening event, or tamping down on the regulatory blowback that characterized Bitcoin’s early days. Even the fundamentals that underpin Bitcoin, such as hash rate and transactions per second in its network, have remained constant. The difficulty levels of the algorithm used to generate Bitcoin have also declined this month.
In the last hour, practically the entire cryptocurrency market witnessed a sudden crash, wiping more than $5 billion of the total market capitalization of all cryptocurrencies. As it stands, the global market cap currently sits at $209.2 billion, down from over $222 billion this time yesterday.
What then caused this morning’s conflagration?