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Bitcoin Price Crashed for a Third Time This Week. Here’s Why

Crypto market analysts believe that Bitcoin miners dumping on the market and a raid on a South Korean exchange could be to blame.

Republished by Plato

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In brief

  • Bitcoin crashed for the third time this week.
  • It’s held steady at about $10,000.
  • Experts pin the blame on a raid on a crypto exchange and a dump by miners.

The price of Bitcoin took yet another nosedive today, falling from about $10,600 to $10,245 in under an hour, a drop of 3%, per data from metrics site CoinMarketCap. Seems minor, but it’s the third major crash this week. Why?

Bitcoin peaked on Tuesday at $12,067. But then it started falling. On Wednesday was the first major ka-doosh, when it fell from $11,726 to $11,395 in about two hours. Then kerplunk on Thursday, when it fell from $11,259 to $10,849 in about an hour. Its latest defeat, er, krrrr-sploosh, occurred today. It’s since recovered a little, to $10,463.

So why has Bitcoin crashed during one of the busiest weeks for crypto ever? Bitcoin works in mysterious ways, but the experts handed Decrypt some likely options.

Simon Peters, a market analyst at crypto trading site eToro, suggested a “number of potential causes.” 

One likely culprit, he said, is a “dump from miners.” Said Peters: “On-chain analytics platforms reported that mining pools have recently been moving higher than usual volumes of Bitcoin onto exchanges.” 

Charles Bovaird, a researcher at crypto economic research firm Quantum Economics, concurred: “one factor may simply be miners selling their crypto,” he told Decrypt

Philip Gradwell, Chainalysis’s chief economist, used the blockchain investigation firm’s technology to discover that Bitcoin had been pouring into exchanges in record levels this week. 

“Bitcoin inflows to exchanges were 92k yesterday, highest in 37 days, as people rushed to sell at near $12k prices of 1 September,” he tweeted.

If lots of people dump Bitcoin on the market en masse—something that often happens when prices skyrocket since traders want to cash out for a profit—then it’s likely that the price of Bitcoin will come tumbling down, often even faster than it went up in the first place. 

Next up, postulated Peters, is “the raid/seizure on Bithumb.” Bithumb, South Korea’s largest cryptocurrency exchange, was raided by police yesterday. The raid, according to Seoul Newspaper is linked to the $25 million token sale for Blockchain Exchange Alliance (BXA) token, 

Another reason could be this week’s stock market wobble. The US stock market, which this summer rebounded after the COVID-19 crash, fell. Over the previous two days, the Nasdaq has dropped by over 7%, and the Dow by 2.2% 

Bitcoin is often considered as a safe-haven asset—meaning that it is uncorrelated with the stock markets—but it crashed along with stock markets in March, and the same could be true this week. 

But it’s not fallen below $10,000, the mythical price point above which the cryptosphere considers Bitcoin to be strong and stable. “I believe there is strong support around the $10,000 level,” said Bovaird. 

“We have seen $10k tested twice in the last 24 hours,” said Peters, adding, “Seems to be holding for now.” 

“It may present an opportunity for bulls that were sitting on the sideline to now get involved.”

For holders’ sakes, let’s hope they don’t have weak hands.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

Source: https://decrypt.co/40916/bitcoin-price-crash-third-time-this-week-experts-why

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Ethereum Classic (ETC) Price Poised for a Surge to $100

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  • Ethereum Classic (ETC) looks poised for a surge
  • Technical indicators show that ETC could go up to $105
  • Also, one reason that could help the altcoin surge is its upcoming ECIP-1103 upgrade

Ethereum Classic price poised for a surge. The altcoin has been outperforming the market recently but can it bounce back over the $100 resistance level?

The crypto market has been experiencing a rough ride. Many altcoins have sunk to less than half their value in less than a month. However, Ethereum Classic managed to rebound faster than most of the market. In addition, the altcoin has managed to hold its ground against the bearish market.

In fact, looking at Ethereum Classic price charts, the asset looks poised for a surge.

Ethereum Classic price charts

At the time of writing, ETC is trading at $55.01, down 67% from its May 8 all-time high of $167.09. However, looking at the crypto’s Fibonacci levels, ETC could go up to ranging from $74 to $105. The price rise depends on whether ETC manages to breach the $60 resistance level. Looking at RSI, ETC is just above 40 and is thus in the safe zone.

On the other hand, ETC price could fall to $9 if the market turns on the crypto.

Possible reasons why ETC has been outperforming the market could be the crypto’s recently announced new upgrade scheduled for July 21. The upgrade will implement ECIP-1103 and include ETH’s Berlin Upgrade.

Also, perhaps investors deem the altcoin a good asset to diversify into and hedge against Bitcoin and ETH volatility. ETC has a limited coin supply of 210 million. In comparison, sister blockchain ETH has an unlimited supply. As such, ETC’s token value is likely to appreciate once the blockchain reaches its maximum token supply.

In addition, the underway ETH 2.0 upgrade will help further differentiate ETC from its more popular sister ETH. In this case, ETC could prove to be a good way for investors to diversify their portfolios.

Finally, ETC holds sentimental value for those who wish to see what ETH would look like if the platform followed its initial roadmap.

Source: https://coinquora.com/ethereum-classic-etc-price-poised-for-a-surge-to-100/

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Shiba Inu Drops Hard Below Critical Support Level

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  • Shiba Inu’s price hit below its critical support level of $0.000007.
  • Its price is now is going for new lows of $0.00000630.
  • SHIB needs to reach above $0.000007 to change the momentum and go up.

Notwithstanding a recent drop in the crypto market, Shiba Inu (SHIB), the meme-based coin named as “Dogecoin killer” has not disappeared. However, there are still some struggles that SHIB has to face.

As of writing, SHIB’s price hit below its critical support level of $0.000007 and is headed for new lows of $0.00000630. Meanwhile, If Shiba Inu breaks through the $0.00000630 support level, it will go to the $0.00000440 support level.

Now, to acquire momentum and make it go up, SHIB needs to reach above $0.000007. Otherwise, if SHIB is able to break through this resistance, it will go on to the next level of resistance at $0.000008.

Numerous individuals think that the SHIB’s rise recently is merely because of the community. In any case, there are different conditions that help the crypto gain investor’s interest. Respectively, SHIB announced its listing in Binance last month.

Furthermore, Shiba Inu will establish its own exchange soon called ShibaSwap. With this,   another decentralized exchange (DEX) like UniSwap or PancakeSwap will be available in the market. Of note, the platform has been operational for a while, but it is still undergoing some tests for security and transparency development.

On another note, many experts and analysts have shared their predictions for SHIB. Market experts even outlined a strategy for Shiba Inu to hit the $1. To reach $1, SHIB needs to increase around12,000,000%.

Consequently, the coin has increased by around 2,000,000 percent monthly since January. Moreover, according to Market Realist, if SHIB  continues to expand at this rate, it might touch $1 by the end of 2021.

Lastly, based on Wallet Investor, Shiba Inu’s price is expected to hit $0.000030 by June 2021 and could rise to $0.000048 at the end of the year.

Source: https://coinquora.com/shiba-inu-drops-hard-below-critical-support-level/

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US Financial Giants Tread Carefully Into Crypto Trend

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  • A large number of financial players continue to move into the crypto space.
  • Its volatility may be holding it back from reaching its potential value.
  • The future of crypto seems uncertain as both community interest and risks stay high.

Even as the pressure around entering the crypto space has cooled down, a large number of big players continue to move in. Many US finance giants are treading forward, cautiously.

Jamie Dimon, Chief Executive at JPMorgan and Chase, said recently, “My own personal advice to people: Stay away from it.” He added, however, “That does not mean the clients don’t want it.” The biggest US bank in terms of assets, JPMorgan is currently assessing how it can help its clients transact in crypto.

Early 2021 saw the financial industry brimming with excitement and possibilities for cryptocurrency. Part of this was due to Bitcoin’s unprecedented jump in value from late 2020 to early 2021. Some of the most recent players attracted by crypto’s novelty are:

  • Online trading firm Interactive Brokers, who promised that it will establish online trading of crypto on its platform by summer end. At this moment, it doesn’t offer crypto payments. Still, it gives its clients the option to invest in assets that include crypto or Bitcoin futures.
  • ForUsAll, a platform managing retirement accounts for small businesses, has also stepped in. It announced on Monday its decision to work with Coinbase for clients to invest up to 5 percent of their balances in crypto.
  • Morgan Stanley, Goldman Sachs, have both recently targeted crypto enthusiasts within their clients. The former stated that it would allow its richer clients to invest in Bitcoin funds, while the latter opened its doors to crypto trading with a newly assigned team.
  • Brokerage firm Fidelity Investments also filed papers with US securities regulators for a Bitcoin exchange-traded fund (ETF). Previously, it created a digital assets division in 2018 to trade crypto for hedge funds.

Despite the steady, yet cautious increase in digital asset investors, concerns remain high. This has also to do with high volatility in the market, especially reflected in Bitcoin’s most recent bull run. BTC went from $63,000 in mid-April 2021 to half its value, $34,000 in June.

Ian Gendler from Value Line, a research firm, sheds light on the influx of investors saying, “Speculators and those suffering from FOMO (the ‘fear of missing out’) will surely continue to flock to cryptos in the hopes of achieving huge returns.”

He, however, directs clients to avoid crypto investments due to high risks and the lack of tangible assets. He also noted, Bitcoin and other digital money is not backed by governments.

Cryptocurrencies are only worth what the next investor is willing to pay.

It seems likely that crypto’s lack of a steady trend may be holding the currency back and blocking possible investments. Be that as it may, but investor interest in the digital asset is far from going down. We’ll just have to keep waiting to see what the future holds for cryptocurrency.

Source: https://coinquora.com/us-financial-giants-tread-carefully-into-crypto-trend/

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