Cryptoeconomy Acutely Shellacked in November 14th Selloff
On November 14th, bitcoin’s market capitalization slipped below $100 billion USD in a matter of minutes as a surprise selloff hit the cryptoeconomy and caused most of the top 100 cryptocurrencies to experience double-digit percentage price declines on the day.
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Bitcoin Slips Below $6,000
For bitcoin, the surprise November 14th selloff came after weeks of stability for the OG cryptocurrency, which had been holding ground above $6,000 since the summer.
Such stability had led to some pundits jokingly referring to bitcoin as a “stablecoin,” while other analysts highlighted the historically nonvolatile period for BTC. At the end of October 2018, bitcoin’s volatility index was just over two percent.
At the time of this article’s writing, however, the bitcoin price had slipped more than 13 percent on the day toward $5,500. The last time BTC had sunk below $6,000 was on June 28th, 2018. The coin’s market capitalization is currently hovering around $95 billion.
On November 12th, Ramiro Burgos, the resident technical analyst at Bitsonline, estimated BTC’s “upward trend is off, and first intermediate reaction can be expected between $6,100 and $5,800.”
“Prices have failed several times when they tried to march into the congestion area between $6,500 and $7,500,” Burgos said.
“If values break down at the current lateral market below $6,000, the next support can be settled at $4,500,” he added.
Bloody Day for the Cryptoeconomy — What Gives?
Beyond bitcoin, the vast majority of the other top cryptocurrencies were also shellacked in the November 14th selloff.
The cryptoeconomy, like the global economy, is complex and many-faceted. As such, there is likely no one singular cause for the rapid downward movement on November 14th.
However, in a more localized fashion, there have been growing tensions and skittishness in the Bitcoin Cash community ahead of that project’s contested November 15th hard fork. It’s unclear for now whether that skittishness has bled into the wider markets and thus if the latest selloff was connected to the fork in any way.
In typical boisterous fashion, nChain CTO and BitcoinSV frontman Dr. Craig S. Wright seemed to claim partial responsibility for the selloff on Twitter, suggesting it resulted from funding his teams’ “hash war” against Bitcoin ABC.
To all BTC miners…
If you switch to mine BCH, we may need to fund this with BTC, if we do, we sell for USD and, well… we think BTC market has no room… it tanks.
Think about it. We will sell A Lot!
And, have a nice day
(BTC to 1000 does not phase me) pic.twitter.com/oUScEahtWc
— Dr Craig S Wright (@ProfFaustus) November 14, 2018
Others think the sell pressure is much more general in nature.
“To put it plainly, [the November 14th] dip is likely indicative of the fact that the most recent round of crypto speculators are capitulating,” Metal Pay founder Marshall Hayner commented to the press.
“Thanks to revised short-term expectations that call into question the idea of a bull run by the end of the year, many are likely taking their chips off the table.”
What’s your take? What do you think caused this acute selloff in the cryptoeconomy? Let us know in the comments section below.
Images via CoinBillboard, Pixabay