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Bitcoin Now Stable After a Huge Plunge Below $3,000, Chinese Regulation and Big Banks Cited as Cause of Crash

September 16, 2017 at 20:25 by Daniel Green

Bitcoin began a colossal price reversal on September 12 (07:00 GMT) that finally culminated with the latest $2,972.01 weekly low, which ended up becoming the new monthly low as well. The massive 32% reduction, nominally totaling $1,407.49, was followed by a flurry of negative news coverage from mainstream and alternative media alike. The $4,979.9 all-time high has never seemed further from reach, and price is at the present time, holding above $3,600 rather stably.

From an $81 billion market cap on September 2, we managed to spill below the $50 billion on September 12. This was achieved during the combined $2,972.01 weekly/monthly low at 12:00 GMT.

Other crypto currencies were equally impacted by the massive flight to fiat, with bitcoin cash retracting by almost 50%, lightly touching below $300, before rebounding to almost $500. It is now trading above $400. Ethereum had a slightly smaller 36% downturn, securing a new $201.28 combined weekly and montly low in the process, the price is staying above $250 for now. Litecoin savored a more severe 51.4% drop that seemed to coincidently match up with the BCH downturn, percentage wise at least. Before the actual slide downward had begun, exactly 91 days have elapsed since litcoin’s market cap was below $2 billion, which was on June 16, right before the massive rally had commenced to the $95 all-time high, which has yet to broken.

Unconfirmed transactions have stayed at acceptable thresholds, rarely flying over 5 digit values. Median confirmation times are declining as well; this is especially noticeable when adequate fees are applied or when sending from reputable sources. The bitcoin mining hash rate is moving upward in accordance with the ascending trend, while the mempool size appears to have bottomed out. This can be mainly attributed to the SegWit lock-in.

The immense price correction has been mainly blamed on the interventions in China, with the notable BTC China closing it’s doors by the end of the month. Huobi and OKCoin will be following suit, by discontinuing their service a month afterwards, by the end of October.

These events seem like a logical continuation of the previous ICO bans in China, although the SEC has issued warnings and promised to crackdown strongly against similar practices.

Jamie Dimon, Executive of JP Morgan, is famed for lambasting bitcoin prior to the dip. However, there is mounting evidence that the firm may have in fact, purchased a substantial amount of bitcoin derivatives on the actual day of the plunge. Even Goldman Sachs and Barclays were listed in the same source, as buyers of the same ETN’s in question.

Bitcoin started trading from the $2,972.01 weekly low on September 12 (GMT 07:00). The run-up continued until today’s $3,869.55 daily high was realized. Trading has since then, remained above today’s $3,501.02 daily low and below the day’s high.

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

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