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500 USD Bitcoin Price Correction

June 14, 2017 at 14:12 by Daniel Green

After securing a new Bitstamp all-time high at $2,980 (third breakout in less than a month) bitcoin started off with a $300 price correction on Monday, before plummeting to a new weekly low of $2,480. A trading range between $2,700 and $2,800 was briefly held before the final bottom was reached.

The psychological $3,000 barrier was broken on countless other exchanges such as BitMEX, Okcoin, and Huobi but failed to materialize a breakout above that level on predominately US dollar denominated trading sites such as Kraken, GDAX, and Bitfinex.

GDAX also symbolically hit $2,999.99 which was strangely close to a push into the 3000s.

BTC-e was plagued by a DDoS attack on Monday which has still yet to be resolved:

The exchange is currently inaccessible as of this writing even though a new all-time high was set at $2,889.49.

Bitfinex encountered similar problems today but stated that operations were to resume with additional monitoring:

Furthermore the price decline coincided with the numerous OKCoin position increases/reductions, a likely factor contributing to further market volatility:

Ethereum has substantially climbed in market cap since yesterday’s flash crash, securing an increase of more than 50% in only one week ($24 billion to $38 billion respectively). It is highly probable that this rapid growth was at the expense of bitcoin and could have partially contributed to bitcoins price drop on Monday. (as a hedge against bitcoin by key market participants)

The bitcoin market cap had been growing steadily during that same period ($45 billion to $49 billion) until Monday, when market activity resulted in a drop to a level that was $120 million below the previous $42 billion. It has since then held close to a $45 billion dollar market valuation despite daily fluctuations.

Another factor that may have additionally contributed to the bitcoin price drop is the ethereum based Bancor ICO, which raised close to $150 million on Monday, and may have been the source of subsequent price volatility for both crypto currencies.

BTC/USD started trading at $2,980 as of 04:40 GMT on Sunday until a new weekly low was achieved the following day on Monday 17:35 GMT at $2,480.01. Tuesday saw a run-up to $2,778 that failed to break-out further and resulted in a two day trading range between the new weekly low and last run-up price.

If you have any questions and comments on bitcoin today, use the form below to reply.

2 Responses to “500 USD Bitcoin Price Correction”

  1. Nanette Purdy

    If it’s that good why aren’t more people doing this?

    [Reply]

    Daniel Green Reply:

    They are to a degree, the market cap is at $75 billion, might even slide up to a $100 billion before the month’s end, then again it might not:

    https://cryptolization.com/

    As for why user adoption is stalling, most people are really not that proficient with computers, and I’m assuming that the average person regardless of country of origin or stature, has too many hurdles to get past. Also under the impression that there is global downturn effecting ordinary people more so than the upper echelons.

    Either way, the rising price of bitcoin is probably the best way to advertise crypto, and motivate people to jump through these hoops.

    [Reply]

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