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Bitcoin Price Sinks Below $15,000 As Altcoins Eclipse The Moon
Wilma Woo | Dec 21, 2017 | 15:30
The Bitcoin price dipped to below $15,000 Thursday as pressure from altcoin growth and the ongoing Bitcoin Cash (BCash) scandal took its toll.
Bitcoin, BCash Shave Off Latest Gains
Cross-exchange data from Coinmarketcap showed an average value of around $15,500 at press time, with Bitstamp dropping to deeper lows of $14,960.
Despite BCash posting huge gains over the past 48 hours, however, today’s dip did not serve to bolster the altcoin’s performance, losing 14% against Bitcoin and 20% against the US dollar since Wednesday.
Volatility has nonetheless returned to Bitcoin markets after a brief period of relative stability around $19,000 earlier in the week.
On Twitter, traders were posting warnings on “short-term caution” required by Bitcoin holders, with one forecasting an up to 5000 point loss.
Would advise caution short term on Bitcoin here. Lost volume support, break below 15360 area will see at least 1,000pt drop and can open up down to over 5,000pt drop. pic.twitter.com/BpY0Qcr7C6
— JMVala (@JMVala_Trades) December 21, 2017
‘Such A Healthy Dip’
The exact cause of the precipitating market spook has yet to become clear but may point towards a longer-term correction which began following CME Group’s Bitcoin futures release Sunday.
Contrary to some expectations, the second futures debut after CBOE failed to take prices higher, stagnation already setting in before the correction gained momentum.
A major fluctuation was apparent on the Bitcoin Investment Trust meanwhile, with premiums dropping from 85% to just 35% of spot prices. GBTC had previously reached as high as $37,500 per Bitcoin in implied pricing.
RIP $GBTC premium, down from 85% to 35%. #REKT pic.twitter.com/vIm0Bl8Wm3
— Jameson Lopp (@lopp) December 21, 2017
As Bitcoin losses draw in on 20% for the week, mainstream media outlets will be likely poised to call the end of Bitcoin’s latest golden era, while in cryptocurrency circles, the mood is more restrained.
Describing the reversal as a “healthy dip,” an analyst known as Professor Crypto predicted a bounce back in the short term which would be “insanity.”
THIS IS SUCH A HEALTHY DIP.
The bounce is going to be insanity. pic.twitter.com/iNvoW74Cik
— Professor Crypto™ (@ProfesorCrypto) December 21, 2017
Such insanity is currently reserved for altcoins both top in market cap and lower down, with assets hitting giant new highs led by Dash at over $1500 and Ripple, which has capped over 16,000% annual growth.
What do you think about Bitcoin’s current price performance? Let us know in the comments below!
Images courtesy of AdobeStock
