Once again, the world’s largest cryptocurrency, Bitcoin, by market capitalization, has come encountered a greater crypto market sell-off. The sell-off has caused its price to be slashed by more than $1,000. Mid value drop-off leads to drastic drop of bitcoin value by 1000 USD.
As per CoinMarketCap and CoinDesk data, in May. 17 at 2:00 UTC, bitcoin (BTC) dropped by 16.7 percent to find bids below $7,000, at $6,600, before rising once more on the back of high volatility, then moving above $7,000 to where it sat at $7,300.
There was a drop of more than $10 billion over a 24-hour period. Over a 7-day period, however, BTC remains positive. It is up by $14 billion on the week, even amid high volatility, and market disagreements about its true price.
There were large sell-orders liquidating numerous stop-loss positions that could be attributed as reasons for the sell-off. General panic amongst traders was also invoked because of the sell-off.
One of the major causes for a dip below $7,000 could have been due to a sell-order on the Bitstamp exchange of 3,645 BTC or $26.8 million in US dollar terms, was executed at around 02:00 UTC on May 17.
It is common knowledge that when bitcoin moves in value, it impacts the rest of the crypto markets, which may also do so. This is seen by a large capitulation in daily prices. The prices are currently down between 11 and 22 percent amongst the top 100 at CoinMarketCap.
Mid value drop-off leads to drastic drop of bitcoin value by 1000 USD. Similar losses were experienced by ether (ETH), bitcoin cash (BCH) and Litecoin (LTC), which lost between 8 and 16 percent. The hardest hit in the top 10 by market capitalization was stellar (XLM), XRP, and Cardano (ADA) dropping 16.3, 16.5, 16.7 percent respectively.
Investor uncertainty was evident as they transition to the sidelines to await bitcoin’s next move. The total crypto market capitalization also took a hit dropping more than $29 billion in the course of 24-hours.