The digital money market hit a waterfall again yesterday after the “3·12” event
In less than 24 hours, the price of bitcoin fell by more than $1,500 to as low as $9,950, a three-month low, according to data from the ZB.com platform.
Is Bitcoin below $10,000 a good chance?
Joe DiPasquale, CEO of San Francisco-based cryptocurrency hedge fund BitBull Capital, said that in the short term, it’s important to focus on the last line of defense between $10,000 and $10,500, and as long as that holds, a prolonged bear market in bitcoin is unlikely.
A large number of bitcoins moved to exchanges
Data from bitcoin and cryptocurrency exchanges show that there is still selling pressure in the market, according to Philip Gradwell, chief economist at blockchain analytics firm Chainalysis, who explains: “Yesterday we had 92,000 BTC a day flowing into the exchanges, which is the highest level in 37 days.”
In a similar vein, analysts at data provider CryptoQuant said miners are moving bitcoin in unusually large Numbers, which may indicate miners are seeking to cash in their Bitcoin rewards.
Optimist: $10,000 is the new $1,000
Despite bitcoin’s recent decline, many in the cryptocurrency community remain optimistic.
“$10,000 is the new $1,000,” said Charles Hayter, chief executive of the bitcoin and cryptocurrency analytics platform CryptoCompare, adding that “with the development of the last three years, the entire ecosystem has made leaps in infrastructure, regulation, and resilience in 2020.”
Hayter believes the current bitcoin market is very similar to the first half of 2017.
Cory Klipsten, chief executive of Swan Bitcoin, a bitcoin buying app, said in a cable:”For most of 2020, bitcoin’s short-term price movements were highly correlated with U.S. stocks.”
He added:”Anything below $10,000 is a great opportunity for greedy buying.”
Chain analyst Willy Woo predicted a week ago that Bitcoin would experience a pullback in the first two weeks of September, but would return to an upward trend after that.
Should DeFi be responsible for the fall?
Another speculation about the cause of bitcoin’s decline relates to the recent DeFi hype craze.
The hottest SUSHI mining this week, is sucking in tens of millions of dollars a day.So there is talk that the hot DeFi mining have drained money out of the market, which may have been one of the main reasons for the fall.
In addition, there are conspiracy theories that the exchange chose to stop the DeFi craze by crashing the market and ending the trend in a manner similar to 3·12 event. But these speculations do not seem to have any basis at present.
About ZB Group
ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank, as well as exchange brands ZBM, ZBX and Korea’s Bithi.
Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open-source their reports and analysis for the public.
Learn more about ZB Exchange by visiting www.zb.com.