Bitcoin value drops $ 1,000 earlier than bouncing off the sharpest sell-off inside three weeks
Bitcoin fell more than $ 1000 before its recovery. This was the biggest drop in the leading cryptocurrency in nearly three weeks.
Around 2:15 UTC, BTC began to decline significantly as its value fell below an earlier support area of around $ 18,474.
Spot volume on major exchanges also rose sharply as Bitcoin's 24-hour spread fell to $ 19,474 to $ 17,284 – the sharpest drop since Nov. 7, according to CoinDesk 20 data.
Bitcoin has since lost some ground again, changing hands for around $ 18,012.
While the reason for the decline is not entirely clear, the sell-off comes at a time when Coinbase CEO Brian Armstrong expressed concern on Wednesday night over alleged plans by the U.S. Treasury Department to own self-hosted cryptocurrency wallets track down.
The slump liquidated positions worth USD 950 million on major exchanges, according to derivatives data provider Bybt.
“The recent drop in BTC prices is the first of many tests of new money to see if they have the vision and the stomach to really invest in BTC and the future of digital finance, or if they are just repeating 2018 and leaving the market will. "Said Jehan Chu, co-founder and managing partner of Hong Kong-based blockchain investment and trading company Kenetic.
I think this is a correction before we break 20,000. Other long-term on-chain indicators such as BTC and Stablecoin Reserve say the potential to buy pressure is still there
Most of the other notable cryptocurrencies also fell, with Chainlink (LINK) and Cardano (ADA) posting the worst declines across the board, losing 18.9% and 16.7%, respectively.