3 Reasons Bitcoin Just Tanked Below $11K for First Time in a Month - page 2.

mk4

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Quote from: Yaunfitda on September 04, 2020, 04:08:09 AM

1. Bitcoin slid in sync with traditional markets

- I thought that there's no correlation with traditional markets?

But there actually is some correlation, regardless if it's a direct or indirect correlation.

Here's a chart of bitcoin vs the SPY(SPDR S&P500 ETF):

■ bitcoin ■ SPY

https://www.marketwatch.com/investing/cryptocurrency/btcusd/charts

Yaunfitda

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1. Bitcoin slid in sync with traditional markets

- I thought that there's no correlation with traditional markets?

2. Bitcoin got pulled down because of DeFi unwinding

- There are a lot of smart investors, it they are going to take the plug off on Defi, then there is something that they need to shift their funds right? So I guess bitcoin should be the best bet for them. So this is highly unlikely though.

3. Miners sold some of their bitcoin

- This is interesting but they should have sold with the price is above $12k. At least that's the typical and most logical move for them, not that the price is already sliding down.

kolbalish

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Bitcoin prices tumbled 6.2% Thursday, falling below $11,000 for the first time in a month.

The price drop trimmed the largest cryptocurrency’s 2020 rally to 50% and sent digital-asset market traders and analysts scrambling to explain the sell-off.

Here are three reasons cited by analysts:

1. Bitcoin slid in sync with traditional markets
2. Bitcoin got pulled down because of DeFi unwinding
3. Miners sold some of their bitcoin

These three reasons are explained in details here, if you want to know about more details about these three reasons just go through the link: https://www.coindesk.com/reasons-bitcoin-tanked-below-11k?amp=1

Topic: 3 Reasons Bitcoin Just Tanked Below $11K for First Time in a Month - page 2. (Read 343 times)