Bitcoin plunges 7 per cent in 45 minutes
BTC’s time above $10k short-lived as cryptos tumble
Bitcoin (BTC) plunged by around 7.4 per cent on Tuesday afternoon, having briefly surged beyond $10k for the first time in three weeks.
In less than an hour, Bitcoin sank from $10,122 to $9,363. Over the last 24-hours, the world’s leading cryptocurrency is now down 0.48 per cent.
Other cryptos have followed its lead, following the abrupt plunge, Litecoin (LTC) stood down 2.1 per cent, Ether (ETH) 1.3 per cent and EOS 1.27 per cent. These daily figures can be argued not to reflect the scale of the afternoon’s fall, as so many altcoins had surged early on Tuesday morning.
Similarly, while Bitcoin Cash (BCH) and Bitcoin SV (BSV) both stand up 2.45 and 0.4 per cent respectively on a 24-hour basis, they actually plunged by 7.8 and 6.5 per cent in less than an hour on Tuesday afternoon.
Although it is not yet clear what triggered the sudden plunge, the sudden movement will serve to remind investors and traders of the crypto market’s seemingly consistent volatility.
That BTC was not able to maintain its position above $10k will not come as a complete surprise, when one recognises the frenzied activity on exchanges in the past 48 hours.
Indeed, earlier on Tuesday, as BTC surpassed the $10k benchmark for the first time in 25 days, CoinMetrics stated: “Bitcoin prices on Bitfinex just did something very strange and are now trading at a $40 premium to the rest of the market.” Commenting on the extremely high level of volume, the crypto market analyst highlighted volume of 3,500 BTC within one 10 minute period.
Some have argued that the seeming breakdown of law and order in parts of the United States in recent days contributed to the recent surge. Most, however, have stressed the long-term macroeconomic themes of runaway money printing from the Fed and the imminent worst recession in decades as motivation for the increased interest in Bitcoin.
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