Down By 18%, Bitcoin Enters A 2-Hour Crash: Analysis

Down by 18% on June, the number one cryptocurrency suddenly crashed from $13,868 to $11,350 against the US dollar. While the factors behind are still uncertain, some of the major exchanges such as Coinbase experienced a major problem when the number one asset dropped so we are reading more about it in the latest cryptocurrency news below.

According to the TokenData, Coinbase experienced an outage since the volume of the exchange surpassed $1.5 billion for the first time since 2018. As the price of bitcoin got down by 18% and reached the $11,000 region again, the buyers on the market bought up the dip and allowed the asset to recover beyond the $12,000 region within several hours. Earlier this week the market analyst Alex Kruger noted that the bitcoin rally is mainly being caused since there are aggressive buyers emerging and he noted:

‘’The cause is simple: aggressive buyers crossed the bid-ask spread and overpowered both passive and aggressive sellers. Based on price action, there were aggressive buyers with deep pockets in action last night. There was no specific trigger known to anyone outside of them.

‘No specific trigger BTC last night. Just very large buyers. There has been a myriad of extremely bullish factors in place as of late, which include: new trading venues, parties front-running Fidelity/Bakkt/Ameritrade/E-Trade/LedgerX flows, Libra, and various macro narratives.’’

Also, the three arrows capital CEO Su Zhu noted that there are about $4 billion in funds that are currently waiting in the sidelines within the crypto market as stablecoins and fiat in order to be invested in the market. The recent price spike of Bitcoin could have been fuelled by the investors on the crypto market and the influx of institutional capital over the years. The institutions tend to invest in the long-term especially when it comes to assets like the crypto ones. Kruger made clear in the coming altcoin news that since $4,200 price range, the bitcoin price has rebounded with small corrections and investors now have to anticipate the retracements in the near term.  He also talked about bitcoin being down by 18% when Kruger said:

“For BTC, price crashes are a feature, not a bug. Either avoid FOMO into positions and learn how to trade crashes, or become a long term HODLER (ideally with some form of risk management). Every single move since BTC broke $4200 has seen a large retracement, with the sole exception of the Apr/2 move. Retracements are useful for trading or for jumping onto the train for those who missed it. Eventually, there will come a retracement that fails. That’s life”.