After touching a two-month low of roughly US$25,400 on Wednesday night, Bitcoin traded at around US$26,800 on Thursday morning in Asia. The price of ether dropped to under US$17,000.
Bitcoin rebounded from a two-month low of roughly US$25,400 on Thursday morning Asian time to trade at around US$26,800. Similarly, Ethereum prices plunged to approximately US$1,550 before recovering to a high of around US$1,700. As investor morale took a blow from macroeconomic issues including the devaluation of the Chinese yuan and the bankruptcy of Chinese property giant Evergrande, all other top 10 cryptos that weren’t stablecoins saw losses. Investors sold off a total of $1 billion in cryptocurrency, bringing the market capitalization of all cryptocurrencies to within striking distance of the US$1 trillion barrier.
After a court in the United States allowed the U.S. Securities and Exchange Commission (SEC) to submit a request to appeal the recent judgement in favour of Ripple Labs permitting retail sales of token XRP, XRP was the cryptocurrency most negatively affected. Meanwhile, activity continued to climb despite a fall in the Forkast 500 NFT index. Despite Wall Street’s decline on Thursday, U.S. stock futures have since stabilised. Federal Reserve meeting minutes from July keep raising fears of future monetary tightening.
CoinMarketCap data shows that Bitcoin has dropped 7.02 percent in the previous 24 hours, to US$26,819.27 as of 07:20 in Hong Kong. This is a weekly loss of 8.88 percent. The largest cryptocurrency in the world dropped to US$25,409.11 early on Friday, a level not seen in two months.
Prices for bitcoin smashed through a key support level at US$28,000 after heavy trading in the late US and early Asia. Digital asset service platform Matrixport’s head of crypto research Markus Thielen issued a memo predicting a collapse or significant fall.
When it was previously this low, in November of 2018, Bitcoin’s 30-day realised volatility surged to almost 100% as values collapsed by 46%, therefore we can safely say that realised volatility has reached 18%. Low volatility periods have frequently been followed by precipitous price drops in Bitcoin. Despite our lack of confidence, we anticipated at least a -13% drop (prices are down 10% as of this writing).
Also Read: Shibarium’s ‘sloppy launch’ has resulted in a $1.8 million pending status
