Bitcoin

Bitcoin drops to $ 10,000 and causes bloodshed for altcoins

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3 minutes read Posted by Clément Wardzala on September 4, 2020 at 8:10 am.

Yesterday, Bitcoin (BTC) began a rapid fall and even fell below $ 10,000 in a matter of minutes, taking the vast majority of altcoins with it

The fall in the price of Bitcoin began around 2:00 p.m. to $ 11,400. In less than 24 hours, Bitcoin has plunged more than 12% , reaching a low of $ 9,960 . This correction follows the previous rejection of the $ 12,000 :

Such a significant drop had not been observed since the flash crash in mid-March , during Black Thursday. Although the current correction turns out to be much less strong, it is sufficient to trigger a fall for the entire cryptocurrency market .

At the time of writing, the vast majority of altcoins are in free fall, with drops in the range of -10% to -30% . All major cryptocurrencies have been affected, including Ether, LINK and BNB.

Only Tron’s TRX is doing surprisingly well. Already engaged in an uptrend before the market correction, it has held up particularly well.

On the Bitcoin futures side, the liquidations followed one after another. On the BitMEX platform, it is thus 2 24 million dollars of long orders which evaporated:

From a more general point of view, the market capitalization of the entire market has obviously suffered. In less than 48 hours, the market cap cashed in the loss of 58 billion dollars , causing the increase from 394 to 336 billion dollars in capitalization .

Bitcoin correlated with the stock market?

For several days, the S&P 500 stock index, based on the 500 largest companies listed in the United States, was in a period of price discovery . While the general economic situation does not appear to be improving, the index was again all-time high at $ 3,588.

It then declined by nearly 5% reaching $ 3,430 , in the same period as Bitcoin. The fall of the S&P 500 came following large divestitures of Tech companies.

While the simultaneous corrections in the stock index and Bitcoin may just be a coincidence, the correlation between the two markets seems obvious .

A massive sale of minors

According to some analysts, this correction is directly linked to a massive sell-off by Bitcoin miners . In the past 48 hours, miners have indeed moved unusually large amounts of BTC .

The biggest mining pools sold BTC en masse on the exchanges, at a much faster rate than normal. Taking the Poolin, Slush and HaoBTC pools, these sold for almost $ 18.5 million in the markets last Wednesday:

As with every rise or fall in the price of Bitcoin, it is difficult to determine with certainty the causes of these effects. For the moment, the situation is far from stable and it is quite possible that the fall will continue to $ 9,600 to fill the CME gap formed on July 27.