Bitcoin Slumps Below $6,500. Here’s why
After a couple of weeks of a high trend, Bitcoin has fallen from a semi-stable $7,100 USD to $6,462.60 in under a couple of hours. The fall began at 2 am this morning and plummeted to $6,763, it fell further till about 11 am, when the value was $6,462 and then it started to recover slightly.
As it is clear from the graph, the fall took place in under a couple of hours. It started at about 2am this morning and hit its lowest so far at 11 pm.
Reasons for Decline
While there is no typical reason for the crash like a hack or a regulatory warning, the coin has still taken a huge hit last night and this morning. There could be multiple reasons ranging from manipulation to a simple market correction from its rather sudden high last month.
But if the external factors are to be blamed for this, here is what has happened in the last couple of days that could have possibly led to this semi-crash in the Bitcoin market. Firstly, the unfilled OKEx Bitcoin Futures liquidation of about $460 million USD which is approximately 950 bitcoins, could be one of the major reasons as it created an overhang. And an overhang of such a large amount of money could have potentially crashed the market.
Another major thing that has happened over the passed month is that the multiple ETF license applications have come into consideration and have been rejected as well. Probably the most famous and followed of those is the Winklevoss Twins, which was sent for a second consideration this year and got shot down for the second time. However, this may not be a good enough reason for the market to fall, because the reason cited for the rejection was a loosely worded proposal and lack of liquidity.
Investors worldwide are asking Bitcoin and cryptocurrency asset holders to stay calm and not sell at a loss right now, because they believe that there could be a further drop in value before anything gets better for Bitcoin.
Also, read: Top 10 Altcoins to buy in August