Bitcoin fell below 8,000 USD for the first time in more than a week, interrupting its latest upward trend, which sent the price to its 12-month high of 9,100 USD.
The cryptocurrency fell by almost 7% to 7,903 USD at 04:00 a.m. ET. the digital money reached a daily low of 7,865 USD but later succeeded to recover slightly. This is the biggest decline in the past two weeks.
Bitcoin hit a price of 9,100 USD on May 30, but after failing to find support above 9,000 USD started falling down and made several attempts to break the 8,000 USD support.
Notably, the sell-off was also accompanied by a large uptick in 24-hour trading volumes to a 24-hour high of 21.5 billion USD. However, its “Real 10” volume – a metric that takes into account trading volume from exchanges reporting honest volume figures as identified in a report by Bitwise Asset Management – currently stands at 21 billion USD.
It’s been suggested the latest sudden bitcoin sell-off, which sent the wider cryptocurrency market sharply lower, was caused by a so-called bitcoin whale selling a large amount of Bitcoin then buying it back after the market has dropped due to the influx of supply—potentially earning millions of dollars in the process.
Last night a large bitcoin holder moved some 25,000 bitcoin, worth more than 200 million USD, from an off-exchange wallet to the San Francisco-based Coinbase bitcoin and cryptocurrency exchange, as reported by a bitcoin and cryptocurrency whale tracking Twitter bot.
Shortly after that, 14,000 bitcoin, worth 112 million USD, was moved from Coinbase to another wallet, then a further 11,000 bitcoin, worth 88 million USD. It was followed by another whale transaction of 11,000 BTC from Coinbase to another wallet. Less than 15 minutes later, a whale moved 10 million USDT from one wallet to another.
Since early June, the Bitcoin has wiped out 6% of its value after ending its best month since August 2017, thanks to the return of investor interest after months of lack of activity on the market.
The industry watchdogs have indicated Facebook’s and JPMorgan Chase’s intention to develop their own digital money as a reason to revive interest in cryptoLights.
“What we are observing is a healthy adjustment”, commented Timothy Tam, co-founder, and CEO of CoinFi. He also explained that today’s movements are normal volatility for the battle. According to him, sales of global financial markets are also a factor influencing trade in cryptocurrencies.
Crypto market recap
The cryptocurrency market colored in red. Declines were registered by the major altcoins, including Ethereum, XRP, and Litecoin.
The broad Bloomberg Galaxy Crypto Index also declined on Tuesday, wiping out 7.4% of its value to 467.30 points.
The crypto market registers serious turmoil after Bitcoin made several attempts to break the support of 8,000 USD, but investors succeeded to rebound it. However, today the cryptocurrency fell sharply and wiped out more than 7.3% of its value.
Ripple’s XRP is also down sharply, losing 7.18% to 0.4104 USD, while Ethereum is down by 7% to 245.52 USD.
The fall of Bitcoin Cash and Litecoin is even higher, exceeding 8%, to 394.97 USD and 102.52 USD, respectively.
The EOS, which is on a downtrend since June 1, wiped out 9% to 6.64 USD. Thus the cryptocurrency lost more than 22% month-to-date.
Bitcoin SV is among a few cryptos, which it trading into the gree, adding 4% to its value to 223.32 USD.
The total cryptocurrency market value wiped out more than 20 billion USD for a day to 251.240 billion USD.