The prices at writing time are $8,398.1 for Bitcoin, $165.9 for Ethereum, and $0.24 for XRP according to CoinMarketCap. The low trading volume explains that the traders were cautious with trading Bitcoin, and this low trading volume leads to maybe the reason for a price drop.
Bitcoin experienced a massive 15% drop while other altcoins suffered the same blow with double-digit declines accounting for much of the cryptocurrency crash on Tuesday.
As is usual with bitcoin price movements, speculation as to why varied widely. European customers of the bitFlyer platform will be able to trade in Bitcoin Cash (BCH), Litecoin (LTC), Ethereum Classic (ETC), Monacoin (MONA), and Lisk (LSK) while USA customers will only be able to initially trade in three of the coins: Bitcoin Cash, Litecoin and Ethereum Classic. The theory was only as good as institutional investors embracing the product, which they didn't on the first day, when only 73 contracts were sold.
Bakkt, an Intercontinental Exchange-backed bitcoin and crypto platform, was unveiled past year and boasted computing giant Microsoft and coffee chain Starbucks amongst its partners-promising to open up bitcoin to institutional investors and bring crypto spending to the high street. "What we've just seen is short-sellers and momentum traders piling on to make things worse, and now here we are back at support". The margin lender requests that the investor deposit additional money or securities to cover the maintenance margin.
"Price action is being driven by short-term technical analysis, as every low price that Bitcoin has bounced off of, and every high price that has been reached has proven to be resistance", Jeff Dorman, chief investment officer at Arca, a Los Angeles-based asset manager that invests in cryptocurrencies, said by email.
Historical milestone for the cryptocurrency market. This sudden slump came like an natural disaster as it fell by 21% and crashed up to $8,090.60, which became the most significant intraday drop since January 2018.