Bitcoin Price Drop by more than $2,000 in One Day
The cryptocurrency market is taking the hit as it recorded a bitcoin price drop of over 10% on Thursday.
The cryptocurrency slid by more than $2,000 on Thursday in its biggest one-day drop in nearly three months.
The bitcoin price drop comes as the cryptocurrency hit a peak of $19,497 on Wednesday. However, it did not break the record of $19,666 set in December 2017. As of Thursday, 8:45 a.m. GMT bitcoin price stood at $16,725. The price is however still up by about 21% this month and by 138% on the year.
The bitcoin price drop correction may also be a function of crypto traders moving larger volumes of bitcoin. Moving to exchanges where they can be more easily sold at a better price when the token approached $20,000.
Part of the rally in cryptocurrencies in the past few weeks has stemmed from the fact that they unlike equities, bonds, gold, or oil have very little correlation to the economy, interest rates, or even other asset classes.
Despite the sell-off on Thursday, Bitcoin may soon hit $20,000, said Ki Young Ju, the creator of CryptoQuant, an on-chain analytics firm.
In a tweet, he said: “All Exchanges Inflow Mean increased a few hours ago. It indicates that whales, relatively speaking, deposited $BTC to exchanges. But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.”
Alongside the bitcoin price drop, other digital coins tumbled. Ethereum fell by more than 13%, to about $491, and Ripple’s XRP fell by 20%, to $0.49.
Smaller “altcoins” have benefited from the push into cryptocurrencies. Ethereum is still up by about 30% this month, while XRP has more than doubled in value.