Blog - Bitcoin Drops Below $7,000 Mark Again

Bitcoin Drops Below $7,000 Mark Again

Written by Bella Fabrizio

Posted on 17th Dec 2019

    Bitcoin and cryptocurrency markets are suddenly sold off, with the bitcoin value losing around $200 per bitcoin in minutes and dipping below the psychological $7,000 mark once again—continuing some relative volatility for digital currency.

    Bitcoin's Competitors, Ethereum, Ripple's XRP, Bitcoin Cash, Litecoin, EOS, and Binance coin, were conjointly heavily sold off, wiping billions from the combined cryptocurrency market.

    As of 9:10 am Eastern Time 12/17/2019, Bitcoin, has dropped 5% and is being traded for as low as $6,708 per bitcoin on the Luxembourg-based Bitstamp exchange after a short period of recovery over the previous night. Altcoins, Ethereum, Ripple's XRP, bitcoin cash, Litecoin, EOS, and Binance coin, were seen with a drop between 7-11%, and appear to be dropping even more.

    The reasoning behind this sudden drop wasn't immediately obvious, however, analysts have noted a drop in crypto market trading volume recently. In periods of low trading volume, crypto costs are in jeopardy of "whales" moving the market by putting large buy or sell orders at a touch higher than or below current market rates. These will trigger algorithms that then send costs sharply higher or lower and might be an indication of market manipulation.

    Research out earlier today advised that the bitcoin price may struggle over the short term, primarily due to the $2 billion PlusToken scandal—one of the most severe cryptocurrency scams. Kim Grauer warns that this is something to seriously consider when thinking about the short term market price. PlusToken scammers are thought to have sold around 25,000 bitcoin, with an additional 20,000 still to be brought back onto the market.