According to one source, the bitcoin sell-off is showing no signs of calming down, but this might not necessarily affect the currency in a negative way.
Will Bitcoin Survive the Sell-Off?
As we all remember, bitcoin has had a very mixed two months in both October and November. Things ultimately started in late September when Bakkt – the institutional crypto trading platform owned and governed by the Intercontinental Exchange (ICE) – made its official debut on September 23. Despite nearly a year of hype and hoopla, this failed to make any serious headway in the crypto space.
The platform experienced a very dismal opening weekend, trading less than 75 bitcoin futures contracts within the first two days of business, and as a result, bitcoin’s price suffered heavily, dropping from about $9,500 to just over $8,100 in a matter of minutes.
Things didn’t quite stop there, however, as in October, news of Mark Zuckerberg’s testimony regarding Libra before a Senate panel proved too much for many of the crypto world’s top enthusiasts. Bitcoin then took another hit, dropping a further $800 in just a few days and falling to the $7,400 range.
From there, a positive turn began to make an appearance. Bitcoin experienced solid gains after Chinese president Xi Jinping commented that blockchain was a powerful technology capable of revamping the country’s infrastructure and economy. Bitcoin exploded back into the mid-$8,000 region from there, but it later jumped back to $10,000 (briefly) after Bakkt experienced a sudden surge of business that saw it trading millions in bitcoin contracts.
Bitcoin eventually settled back into the mid-$9,000 range, where it stayed for some time, only now, it has incurred several additional losses which have brought it back down to $7,300 at the time of writing. While this is $100 higher than where it stood over the holiday weekend, it’s still quite low by comparison.
Technical charts suggest that bitcoin is still being sold off in droves, and many enthusiasts are running out of patience as of late when it comes to holding their crypto. Chances are, they want to cut their losses short and sell off their stashes before any more bearish behavior can take place, but the charts do suggest that we’re likely to see even more trading as bitcoin continues to incur losses, which could ultimately reverse the bear process by providing bitcoin with further activity.
China Is Making Things Hard
Dan Matuszewski – a principle at CMS Holdings – also suggests that perhaps business in China is potentially affecting the cryptocurrency as well. He states:
The big narrative is around what’s going on China. What you started to see is China cracking down on a lot of the elements of crypto that have been operating inside the country.
Despite everything, bitcoin is nearly $200 higher than its lowest Monday point of just over $7,160.