The bitcoin price took its largest hit in weeks today, falling over $200 USD in less than a day. Altcoins like litecoin and dash have also suffered sizable drops.
At press time, bitcoin had dropped 9.37 percent and litecoin by 15 percent over the past 24 hour period. Dash dropped by 7.3 percent and monero by 6.25 percent. Amid the red candles there were a few concerted attempts at recovery, though each was matched by a larger fall.
Just two days ago, one bitcoin was worth over $1,860. Holders will be spending their weekends watching nervously to see if it can regain some or all of that ground again.
For those crediting recent gains to Japanese trading activity, the losses started appearing on a Friday evening Tokyo time. Of note, though, two cryptocurrencies particularly popular in Japan — NEM and Ripple — actually gained 11 and 7 percent respectively over the same period.
What Caused the Drop This Time?
There haven’t been any particularly significant news events to prompt the drops. Litecoin activated SegWit in the past few days, which many had predicted would see a price increase.
Some will no doubt point fingers at the People’s Bank of China. The Chinese central bank announced just yesterday it would publish new bitcoin trading regulations in June. However the news is not a shock, and traders have anticipated it for some time.
The PBOC has conducted several on-site inspections of bitcoin exchanges and placed restrictions on deposits and withdrawals. The bitcoin price continued to soar after all that news, so it’s doubtful today’s drop is a response to that.
It’s possible the fall is the result of profit-taking and a panicked reaction. Several observers have said the price rose too far too quickly, and was likely a bubble.
Likewise, altcoin prices appeared to reflect trading exuberance rather than confidence in their technology or actual utility. Japanese commentators noted that much trading chatter demonstrated a lack of understanding of the actual assets.
Either way, many will spend the weekend watching the charts closely, as the plunge may still have some way to go.
Are you holding, selling, panicking or serene? Let’s hear your thoughts.
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