Bitcoin panic as prices drops SEVEN percent – crypto in freefall

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While Bitcoin is notoriously volatile, recently the digital coin and other cryptocurrencies have rallied to record highs. However, on Tuesday November 16, the price of Bitcoin plummeted by around seven percent.

According to CoinDesk at 11:55am, Bitcoin was trading at £45,024.45.

It marked a drop of 7.95 percent over 24 hours, and comes just six days after the digital coin reached a record high of £51,317.98.

Ethereum also saw a drop in value, with CoinDesk valuing the crypto at £3,186.76.

Over 24 hours, Ethereum dropped by 9.23 percent, or £324.03.

Experts and analysts suggested a pullback in Bitcoin’s value was expected, and has normalised the elevated funding rates or costs associated with holding long positions in the perpetual futures market.

Laurent Kssis, crypto ETF expert and director of CEC Capital, told CoinDesk: “We have seen substantial long positions (worth $335m) on crypto exchanges Binance and FTX.

“It’s a combination of long liquidations and market makers getting rid of their risky (bullish) exposure.

“Leverage and delta hedging becomes more expensive as more orders flood the market.”

READ MORE: EU wide ban on bitcoin mining ‘great step’ towards saving environment

It comes as the Deputy Governor of the Bank of England warned Bitcoin and other cryptocurrencies are “growing very fast” and could soon pose a risk to financial stability.

Sir Jon Cunliffe told BBC Radio 4’s Today programme regulators are taking a closer look at the digital tokens.

He said: “On the question of Bitcoin and other cryptoassets and their value, my judgement is that they are not at the moment a financial stability risk but they are growing very fast and they are integrating more into what you might call the traditional financial system so the point at which they might pose a risk is getting closer, and regulators and legislators need to think very hard about that.”

Sir Jon added: “Bitcoin is an asset that can go up in price, it can go down in value to zero.

“We are talking about issuing something that is stable, it is safe, that people can trust, that can anchor and hold together our monetary system.”

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Nicholas Cawley, an analyst at foreign exchange firm DailyFX, told The Independent: “Bitcoin’s sell-off has taken it back to levels last seen 10 days ago, hardly a plunge, more a correction of the multi-month rally.

“The one area of concern is that the move lower has seen bitcoin fall out of its multi-week ascending channel, turning the technical outlook from positive to neutral.

“An interesting area of support is around $59,500 – if this holds then we may well see bitcoin reclaim its recent losses, and look at printing a new all-time high, over the coming weeks.”

Glen Goodman, author of The Crypto Trader, said on Twitter: “The current crypto market correction is caused by excessive optimism.

“Every time the leveraged bulls get flushed out, they start buying futures on leverage again almost immediately.

“Corrections last as long as it takes for most traders to start losing hope and stop buying dips.”



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