The past week has been quite an upward ride in the crypto market. Bitcoin even hit a high of $8200 this week. However, there seems to be a turn around as BTC drops 11.07% to $7093.80 as at the time of publishing, according to Coinmarketcap. The cause of this dump which occurred within minutes is blamed on the massive exchange of BTC. It seems that a large amount of BTC was sold on crypto exchange, Bitstamp and a number of exchanges at the same time. This lead to the drastic drop in the price of BTC.
Bitcoin is not alone in this dump as other altcoins follow with Ethereum down by 13.42% at $230.30 and XRP down by 12.11% at $0.373614. Although the market is not totally bearish. However, the 10% slide which occurred during early Asian trading hours had the entire market down with it as total cap reduced by $30 billion.
The top ten cryptos are in reds at the moment as the dump had them crashing down from their highs. XRP and Cardano are having the heat dumping 12 percent each. Bitcoin Cash also had a hit which brought it down by 13.42%. Litecoin and EOS are not left behind, suffering a loss of over 10% each. Binance Coin suffers a loss of 5.45%. Amongst the top 20 ALTs, Bitcoin SV has made a recovery from 28% loss to over 12%. Tron also made a recovery from a 16% drop in price to 0ver 11%.
While the dramatic drop in price is being traced to the massive amount of bitcoin being traded at once, other factors can be fingered. According to Michael Gu of the famous crypto YouTube channel Boxmining, he believes that the dump was signaled by a single whale. Micheal claims that everyone saw an opportunity to arbitrage when the price of BTC went down to $6200 on Bitstamp. He claims that with everyone arbitraging, the price dipped on other platforms as well. He remarks that this is a significant eye-opener of the “power whales and big sell orders have on the cryptocurrency markets.”
Do you think Bitcoin will recover from the dump and get on a bullish ride? Share your thoughts with us in the comment section.