The cryptocurrency fell sharply on Friday, with the sudden sale dragging Bitcoin to a three-week low. Bitcoin dropped as much as 7.7% to $21,404 (about Rs 17,10,700) in a few minutes in the European morning, at around 06:40 GMT. It recovered slightly then resumed its downward trajectory to trade around $21,400 (roughly Rs 17,10,400) At 11:38 GMT, down 8.2% on the day.
Ether also fell at the same time and was last down 8.8% at $1,685 (about Rs 1,347,700).
The reason for the drop is not clear.
“It doesn’t show a pattern of a flash crash, as the asset doesn’t rebound sharply immediately but sinks lower,” said Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown. in the hours that followed”.
“Looks like this is the result of a large purchase.”
Streeter Says It Has Been Cryptocurrency Cardano be the first to move, followed by Bitcoin and Ether, and then other things like altcoins Dogecoin.
Cryptocurrencies have dropped significantly so far this year, as the US Federal Reserve hikes interest rates and hyperinflation drives investors away from riskier assets.
Craig Erlam, senior market analyst at Oanda, said Bitcoin’s inability to recover losses “shows that there is an element of necessity for this move”.
Such strong moves are common in the volatile crypto market. On June 15, Bitcoin fell more than 15% as investors panicked at the collapse of the so-called stablecoin, TerraUSD and a major crypto lender was freezing customer withdrawals. .
Friday’s move put Bitcoin on track for its worst day since the crisis in June.
Streeter of Hargreaves Lansdown said: “Speculation in cryptocurrencies is extremely risky and not suitable for the vast majority of people.
© Thomson Reuters 2022
