Close
Coin News

Bitcoin’s Price Drop: Suddenly Losing $1,000 USD in Minutes

Bitcoin price took a nosedive in trading values. While it has been expected, the bearish move might not be all bad news.

Bitcoin price has got its anticipated pullback, dropping over $1,000 USD in price before it could touch its recorded all-time high value.

As the market gained closer to the $20,000 USD mark, Bitcoin price experienced a wave of major volatility dropping at around 5% in trading value. This occurred just after almost hitting a resistance level of $19,500 USD.

Why did Bitcoin price drop?

It seems as though the large-volume investors depositing BTC to exchanges could be the reason for the sudden decline. As founder of on-chain analytics resource CryptoQuant Ki Young Ju noted:

Bitcoin price drop not necessarily bad news

While it seems like a bearish decline, it’s not necessarily bad for the overall health of the market. A pullback has been anticipated by Bitcoin experts and analysts for some time. The market is possibly experiencing a short term sell-off as new investors sell Bitcoin for higher profits. With the recent surge as a cumulative result of FOMO, new investors, and fresh institutional interest, it is also possible that Bitcoin won’t fall back to lower price levels.

Not all analysts believe that the token’s decline is at an end, however. Tone Vays, financial analyst and derivative trader, foresees Bitcoin falling down to around $14,000 USD before it peaks again.

There are differences between this correction and the bearish winter of 2018. Mainly, the rising interest from institutional investors and the wider spread attention to the cryptocurrency market. With firms like Grayscale buying significant portions of Bitcoin and PayPal offering wider chances of adoption, Bitcoin’s chances of recovery remain higher than before.

 

Posted: Nov 26, 2020 Author: Becky Categories: Coin News