Byte Tree: crypto market plunge related to $1.2 billion transaction

Posted 26 September, 2019

Byte Tree experts stated that the cause of the fall of Bitcoin in a matter of hours could be a transaction of $1.2 billion. Immediately after the operation with a large amount, the market began to fail, and over the next hour the main coin lost about $1,000.

As it was explained, large cryptocurrency transfers from wallets to exchanges always exacerbate volatility. Moreover, such transactions are often made with the aim of further selling bitcoins, which naturally leads to a drop in the value of the asset. Analysts believe that the transfer of $1.2 billion to BTC caused a panic in the market, and this operation was a kind of turning point that completed the long phase of weak bitcoin volatility.

At the end of trading on September 24, the main cryptocurrency sank below $8,000, but later recovered after spending several hours in the green zone. This pushed the price up by more than $300. On September 25, the volatility of Bitcoin began to increase, so the gap reached some $500 in both directions. A similar situation was observed with other cryptocurrencies.

Another factor that previously remained unknown could be the preparation of the impeachment of Donald Trump. The turmoil in the US stock market led to large-scale buying of the dollar at low cost. Cryptocurrency investors also decided to replenish assets in fiat, but for this they had to sell impressive amounts of Bitcoin.The situation can stabilize after the issue with Trump is resolved.

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