Bitcoin Dips Below USD 30,000 and Rallies Back
Today, the most popular cryptocurrency, bitcoin (BTC) dropped below the USD 30,000 threshold for the first time since January, before rebounding sharply. (Updated at 16:28 UTC with the latest market data.)
BTC dropped to almost USD 29,150 and it took around two hours to recover above USD 32,000. At 16:23 UTC, BTC trades at USD 32,423 and is almost unchanged in a day. It's still down by almost 20% in a week and 12% in a month, trimming its annual gains to 251%.
Other major cryptoassets from the top 10 list have also rebounded sharply, but are still in red today, dropping by 3%-12%.
Alex Siman, founder at Subsocial, an open platform for decentralized social networks, described this fall in the price as "a small wonder." The reason behind that, he said in an emailed comment, is that "the broader market resistance from the ongoing clampdown on crypto-related activities in China is no longer preventing crashes."
"At this rate of fall, it's difficult to predict the level at which the price will form a baseline for an imminent rebound, as big investors with the potential to reverse prices are choosing to watch from the sideline. While we can still see a positive dynamic before the end of this year, to me, steeper plunges to [USD] 20,000 won't come as a surprise either."
Also, fintech app Yield App CEO, Tim Frost, said that we may be reaching "an inflection point" with regulators and crypto, adding that many seem to have "finally realized how powerful and popular this asset class is." Still, instead of trying to understand and regulate it effectively with forward-thinking policies, Frost said, "they are reacting in fear with bans."
"This, added to the general downward sentiment, seems to be indicating a full-on bear market from here. Sensible investors would do well to find a solid passive income opportunity for their crypto while they sit back and ride out the storm," he said.
Meanwhile, analytics firm Coin Metric stated today that the amount of BTC held on major crypto exchange Binance has climbed to new highs over the last month.
"There’s now over 570K BTC held on Binance, far more than any other exchange in our coverage. Although there are many factors at play, the increase is likely at least partially caused by investors moving their BTC off of Chinese exchanges and on to Binance, which is not officially headquartered in mainland China," they said.
Matt Maley, Chief Market Strategist for Miller Tabak + Co., told Bloomberg that any meaningful break below USD 30,000 will make "a lot of momentum players to throw in the towel," so "even if bitcoin is going to change the world over the long-term, it does not mean it cannot fall back into the teens over the short-term."
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(Updated at 14:17 UTC with more insights.)