Saturday, February 4, 2023

Prices Bounce, Nervous Holders Breathe Sigh of Relief for Now

Prices Bounce, Nervous Holders Breathe Sigh of Relief for Now

Bitcoin and token holders had a moment of dread yesterday evening as prices took a dive from their high perch. From up in the $2,600s, King Bitcoin fell and almost smashed through the $2,000 barrier, but instead rebounded.

Also read: Bitfinex May List ‘Legacy Bitcoin’ on Exchange After a Soft Fork

Prices Dump, Bounce, and Settle?

At press time, bitcoin is back — resting around $2600 on Coinbase. There was residual unease as several traders wondered if yesterday’s record highs were in fact a tipping point.

Japanese JPY trading was a LOT more drastic — showing where most of the action probably takes place. On Quoine, bitcoin fell from a high of ¥337,800 ($3,030) to a frightening ¥229,300 ($2060) in just eight hours, before rebounding within 30 minutes to around ¥276,700 ($2,480). It’s currently sitting precariously around ¥295,000 ($2,650). Yes, those USD-equivalents are real.

Ethereum LogoThe dust seems to have settled… for now. Nothing is ever certain in crypto-land and it’s still too soon to be smug.

The anxiety spread to the altcoin party as well, with most of the top popular tokens taking a hit. Slapped the hardest was Ethereum and the parent it supports, Ethereum Classic — which were both down double-digit percentages.

However by press time many tokens had rebounded, with even ETH and LTC back in the green on Poloniex.

Notably, finance-friendly twins Ripple XRP and Stellar Lumens were the only pair in the top 10 that actually rose during the period others fell, making the carnage a blockchain-only affair. Post-correction, both continued to soar.

Coincap prices chart

Someone’s Taking Profits

The lack of any significant news that would shift prices in such a fashion suggests profit-taking. There was no exchange hack, no People’s Bank of China directive, no hint of a KYC or tax crackdown anywhere that matters. Even the scaling debate seems calmer than usual with the recent Agreement.

It’s hard to even call the sudden dump a “correction”. Rather, someone out there just made a lot of money on yesterday’s highs. Someone with a better idea of when to act than most.

On open traders’ chat groups like Whaleclub and Whalepool, no-one seemed too concerned — and no-one seemed to have any idea where prices would go next. Some predicted a “double-top” for bitcoin, others predicted a “new ATH”, others “850 here we come”. The line between serious prediction and sarcasm was thin. In other words, it was just another normal day.

Most (as usual) were content to ride the rodeo bull of volatility and debate which token would go lunar next. With an alphabet soup of crypto tokens lining up for their turn, as long as the money keeps coming in, any of them has a shot.

Were you a profit-taker or observing the spectacle? Let us know in the comments.

Images via Pixabay,

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