Sudden 5% Drop in Bitcoin (BTC) – Dragging Ethereum (ETH) & Ripple (XRP) Along With | Wait for Bull Trend Before Buying More Crypto – Says Wall Street Advisory Firm

0

Bitcoin (BTC), which has shown outstanding stability for past several months, has seen sudden drop of 5% in its value; it causes other major cryptocurrencies like Ethereum (ETH), Ripple (XRP), Litecoin, Stellar, EOS, and Bitcoin Cash to drop simultaneously.

According to Coindesk, bitcoin has wiped out billions of dollars from its market cap within a short time, after spending the calm period of over 17 months with low volatility.

Shortly after sudden price drop in bitcoin, it managed to recover some of its lost space. As, Bitcoin was trading at around $6500 earlier today, which has been the constant range of bitcoin for last couple of months. It shortly dropped down to $6125, but then quickly recovered to around $6200.

Bitcoin (BTC) Price Today – BTC / USD

Name Price24H (%)
Bitcoin (BTC)
$6,478.72
-0.57%
Ethereum (ETH)
$205.13
-1.01%
Bitcoin Cash (BCH)
$448.54
-0.53%
XRP (XRP)
$0.454949
-1.48%
Litecoin (LTC)
$52.65
-1.71%
Bitcoin Gold (BTG)
$26.15
-1.29%

Bitcoin Drop Reasons

These sudden price changes are usually attributed to trading bots placing buy or sell orders which then quickly picked up by the others, causing domino effect on price, or so-called trading whales, who hold large amount of cryptocurrency, buying or selling huge crypto chunks at above or under market rate.

However, a study done by Blockchain Research Firm Chainalysis states that trading whales are not responsible for price volatility. It further says:

“Bitcoin whales are a diverse group, and only about a third of them are active traders. And while these trading whales certainly have the capability of executing transactions large enough to move the market, they have, on net, traded against the herd, buying on price declines.”

In the meantime, several investors are waiting for financial services industry and regulators to show their interest on cryptocurrency, well before deciding whether to increase crypto holdings and investments or just cash out.

SEC (US Securities & Exchanges Commission) still thinking of whether to grant approval to bitcoin exchange-traded fund (ETF) proposal, that shall open-up bitcoin investment market to huge amount of fresh capital.

Many are still in hope that SEC will ultimately give approval for Bitcoin ETF; they are also looking forward to launching platform in November, called Bakkt, which is developed by New York Stock Exchange (NYSE) owner, in partnership with Microsoft, Starbucks Coffee Chain, and Boston Consulting Group.

As The Oofy reported before Bitcoin Bull Run 2018: Bitcoin Price Going Through A Gradual Recovery.

Wait for Bull Trend Before Buying More Crypto

Fundstrat Global Advisors suggesting clients and investors to avoid buying more bitcoins for some time and wait till the market move towards bull trend. Fundstrat is a Wall Street strategy firm, which is among the mainstream financial industry’s top cryptocurrency bulls.

While writing in a recent note to users, Fundstrat’s technical strategist Robert Sluymer stated that investors are looking to increase their bitcoin holdings should for some time till market shows the signs of improvement.

In note cited to MarketWatch, Sluymer says, “Investors should remain patient and wait for evidence of an improvement in ‘trend’ before increasing exposure,”. He further stated: “A move above the September real and relative highs remains the key resistance/reversal level that will need to be exceeded to signal the early stages of a trend reversal.”

READ ALSO:  Ethereum Price Prediction: Can Ethereum rise to $ 2500? - ETH News Today

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.