Bitcoin cash, Ethereum and ripple all lose a tenth of their value in less than an hour. Cryptocurrency market is crashing in a sudden and dramatic market collapse. Despite of having good news around regarding US SEC to re-consider the appeal regarding crypto currency, it failed to maintained its positive growth. Last few weeks were good for crypto market. It showed stable trend over $7,000 for worlds’ number one crypto currency bitcoin and now out of blue, it tumbles by 5% to 6,900.
Majority of crypto coins falling by 5% or even more. Bitcoin dropped in price by more than $300 in the space of an hour on Wednesday morning, with Ethereum, ripple and Bitcoin cash all following its trend. By Thursday morning, Bitcoin had fallen $1,000 in just 24 hours. The reason for the sudden fall isn’t known yet. Some analyst suggest this panic can cause even more fall in the price. At the time of writing, BTC is currently at $6,387 and is down 5.4% on the day. Altcoins, however, had it much worse, with Ethereum, Bitcoin Cash, Cardano, Tron and more posting 12% losses or more. Altcoins tumbled so far that BTC dominance rose by nearly 2% in just a few hours, moving from 52.9% to 54.8% at the time of writing.
While bitcoin fell by around 12 per cent, ethereum, ripple, bitcoin cash and EOS faced the hardest hit, which all dropped by around 20 per cent. Many traders believe that Goldman’s move to drop its plans to open a crypto trading desk could be the reason behind sudden market crash. Anthony Grisanti noted
“[Goldman’s move] is the first roadblock in a road of many. I’m not surprised that Goldman Sachs maybe announced that it [will not open a trading desk], only because there isn’t enough volume in the Bitcoin futures for them to put out [crypto] positions and hold those… I’m trading this on the short side, $6,740 is the next support and I’m looking for this to trade down to that level.”
Bitcoin may fall further to $5,000
The host of the Bloomberg’s “Charting Future” show first brought up the idea of the correlation between the U.S. dollar index and Bitcoin, adding that as the dollar moves relatively higher, BTC moves lower (and vice-versa). So this could be another factor, as U.S dollar index is trending higher may indicate that Bitcoin could suffer a rough ride.
Bitcoin is still trading at higher than it was at this point in last year and then it reached close to $20,000 in December 2017. Bitcoin has been on bumpy side right now, but we can hope to rise again.