Reuters / Lucas Jackson
- Bitcoin fell more than 10% on Thursday as cryptocurrency traders whose prices have risen 20% this month are holding on.
- The digital token reached a record high of 20,000 this week.
- Traders said that after such a quick rally, many large investors had booked profits on their holdings, many of which may have been moved to exchanges to get a better price.
- “It seems increasingly that we are surviving the bitcoin tipping point,” the crypto trader said. “In fact, one has to expect courage.”
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Bitcoin fell more than $ 2,000 on Thursday in its biggest one-day drop in nearly three months.
The price of the world’s largest cryptocurrency fell 11% to 16,725 by 8:45 p.m. This is still an increase of about 21% this month and 138% year over year. It peaked at $ 19,497 on Wednesday but did not break the record of 19,666 set in December 2017.
Price correction can also be the work of crypto traders who migrate to large bitcoin exchanges – where they can be sold more easily at a better price – when the tokens approach 20,000 20,000.
“It seems increasingly that we are surviving the bitcoin tipping point,” said John Kramer, a trader at crypto trading company GSR. “In fact, Coldtown is to be expected. But as well-known fund managers and institutions re-examine their bitcoin theses every day, it is becoming increasingly difficult not to take the asset more seriously.”
Kramer said many investors feel the stock market has recently divorced from economic reality. U.S. The S&P 500 has hit record highs with an increase in Kovid-19 cases, with 2,200 Americans dying from the virus every day. Potential returns from traditional markets are low, while risk is high, he said.
Part of the boom in cryptocurrencies over the past few weeks has come from the fact that they – unlike equities, bonds, gold or oil – have little to do with the economy, interest rates or even other asset classes.
“The stimulus response to the epidemic has allayed concerns among many large asset managers about the devaluation of the US dollar, highlighting the limited supply of bitcoin,” Kramer said. “The risk-return relationship for digital assets is now uniquely designed as an attractive option that is incompatible with large macros and enhances the diversification of traditional portfolios.”
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Despite selling out on Thursday, Bitcoin could soon hit 20,000, said Key Young Jue, creator of the analytics firm Cryptoquant.
“Some exchanges inflow mean increased a few hours ago,” he said To tweet. “It suggests that whales, relatively speaking, deposit $ BTC on exchanges. But long-term on-chain indicators say buying pressure prevails. I still think we could break 20k in a few days.”
Cryptoquant
Other digital coins collided with Bitcoin. Etherium fell more than 13% to about 1 491 and Ripples’ XRP fell 20% to 49 0.49.
Small “velcoins” have benefited from the pressure of cryptocurrencies. Etherium is still up about 30% this month, while the value of XRP has more than doubled.
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