Crypto Week in Review: Hello, Volatility! Bitcoin Price Drops $800 in an Hour
Over the past weekend, Bitcoin (BTC) fell from a high of $10,387 to $9,700 in less than 48-hours. It then started to climb back above $10,000 but was rejected around $10,300 on Wednesday. In less than an hour, prices fell sharply by more than $800 to a 14-day low of $9,437 on Voyager. The violent flash crash was Bitcoin’s fifth-largest hourly price drop of all time, drawing comparisons to the crypto market’s 2017 sell-off.
Unfortunately, altcoins didn’t escape this week’s volatility. Bitcoin Cash (BCH), Tron (TRX), EOS (EOS), Verge (XVG), Ontology (ONT), and several other top assets lost more than 20% over the last seven days.
While the exact reason is unknown, many in the crypto community are blaming derivatives for the market’s sudden dip. On Wednesday, close to $120 million worth of long contracts were liquidated on BitMEX alone. After reaching near all-time highs earlier in the week, longs on BitFinex plunged by 5% from 45,190 to 42,965 in less than 60 minutes.
Bitcoin is currently trading comfortably above $9,700 and many are calling this week’s pull back a “bull breather.” Since the start of the year, Bitcoin has gained more than 35%, and this week, confirmed a “golden cross” after the 50-day moving average (MA) crossed above the 200-day MA.
The mixed signals have left the market in limbo and traders on the sidelines waiting for a clear indicator. Whether the market moves up or down next, it’s the volatility that makes crypto fun, right?
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