Volatility Returns: Bitcoin Price Plunges over 13% to 2-Month Low
- Bitcoin (BTC/USD) plunged by 13.6% to $221, its lowest price since June 5 and within striking distance of 4-month lows.
Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that (BTC/USD) plunged by 13.6% to $221, its lowest price since June 5 and within striking distance of 4-month lows.
The drop was the steepest for bitcoin since February. The bulk of the losses took place during a mini “flash crash” lasting less than an hour. At least partially to blame was a larger flash crash on Bitfinex, where prices plummeted to $162, a loss of 35%, during the period. The crash was catalyzed by a massive sell volume of over 44,000 BTC (worth approximately $9 million, based on the average price).
Prices then violently reversed course, recouping all their losses, also on a volume near 44,000 BTC. They have since settled near $234, still well below the fresh 6-week lows set this past weekend. Prior to the flash crash, prices had broken through these lows.
Despite the apparently purely technical nature of the drop, bitcoin is still 7.8% lower than where it was 24 hours ago. There are thus likely fundamental factors at play, the most intuitive being reduced investor confidence arising from the debate surrounding Bitcoin XT, a potential hard fork that has split the community.
Price stability had been decreasing during recent weeks as bitcoin crossed back below its 50-day moving average (MA). Today's drop all but erases the spring gains, and challenges the notion of a new era of stability with greater involvement of institutional trading venues.
Last year’s August also saw a return of extreme Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders to the crypto markets following several months of stability. Altcoins like litecoin were bruised badly during the period. This time around, however, litecoin got off fairly easy, dropping roughly in step with bitcoin. The LTC/BTC rate continues to hold steady near 0.015.
Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that (BTC/USD) plunged by 13.6% to $221, its lowest price since June 5 and within striking distance of 4-month lows.
The drop was the steepest for bitcoin since February. The bulk of the losses took place during a mini “flash crash” lasting less than an hour. At least partially to blame was a larger flash crash on Bitfinex, where prices plummeted to $162, a loss of 35%, during the period. The crash was catalyzed by a massive sell volume of over 44,000 BTC (worth approximately $9 million, based on the average price).
Prices then violently reversed course, recouping all their losses, also on a volume near 44,000 BTC. They have since settled near $234, still well below the fresh 6-week lows set this past weekend. Prior to the flash crash, prices had broken through these lows.
Despite the apparently purely technical nature of the drop, bitcoin is still 7.8% lower than where it was 24 hours ago. There are thus likely fundamental factors at play, the most intuitive being reduced investor confidence arising from the debate surrounding Bitcoin XT, a potential hard fork that has split the community.
Price stability had been decreasing during recent weeks as bitcoin crossed back below its 50-day moving average (MA). Today's drop all but erases the spring gains, and challenges the notion of a new era of stability with greater involvement of institutional trading venues.
Last year’s August also saw a return of extreme Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders to the crypto markets following several months of stability. Altcoins like litecoin were bruised badly during the period. This time around, however, litecoin got off fairly easy, dropping roughly in step with bitcoin. The LTC/BTC rate continues to hold steady near 0.015.