Cryptocurrency Sell-Off: Bitcoin (BTC) Plummets and Market Follows Suit


The weekly volatility of Bitcoin was at a 15-month low earlier this week. The digital currency has seen intense volatility and losses since then. The lost wallets having more than 212,000 ($1.3 billion).

The total market capitalization for cryptocurrencies was US$201 billion today, down from US$219 billion on Tuesday. The cryptocurrency market is now valued at $201 billion.

Given Thursday's sudden drop a collapse in price now looks the more likely of the two scenarios. "That net activity demonstrates that trading whales were not selling off Bitcoin in any mass amount, but rather were net receivers of Bitcoin from exchanges in late 2016 and 2017".

Trading bots and whale wallets are also suspected to be the cause for the volatile movement.

Bitcoin whales are most commonly early bitcoin adopters who are sitting on millions in cryptocurrency.

Another thing that could have triggered the decline in Ripple, Ethereum, and Bitcoin prices was the activity of the so-called "Whales" in the market.

Worldwide financial bodies are also voicing concern for the volatility seen in the crypto market. "Sustained rapid development of crypto assets can generate new vulnerabilities in the global fiscal system", claimed the International Monetary Fund to the media in an interview.

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In the United States, the Securities and Exchange Commission (SEC) is still considering whether to approve a Bitcoin exchange-traded fund (ETF).

The day's major resistance levels were left untested, whilst Bitcoin Cash slid through the day's major support levels to leave the extended bearish trend firmly intact. The crypto is in bearish territory, as shown by the MACD indicator and it is in a downtrend, as evidenced by the 100 EMA line. Though, the past seems to indicate that the Bitcoin's current whales may not have malicious intent. Well, this usual notion regarding BTC whales is about to change as according to new data from Chainalysis, has revealed that bitcoin whales are a surprisingly heterogeneous group of coin holders who might be doing more good than harm to the market.

The market analyst, Neil Wilson, warned that "the cryptos are a massive and speculative ball as many of us warn". Tech stocks have taken the biggest hit.

The coin had breached the initial support level, noted at $217.03. The hourly RSI indicator is dangerously low at 12.73, which shows that ETH is oversold. Its market cap has managed to stay just over the $20 billion mark, a point which it hasn't crossed since September 18.

The Ripple (XRP) price has plunged 9.9% to 42.81 USA cents. The hourly RSI indicator is at 11.15, which shows that XRP is now oversold.

While it is possible for BTC to sustain the plunge towards recovery, it is questionable if the cryptocurrencies with the low trading volume will be able to see a positive price development. As of 0530 UTC on Wednesday, its market value stood at $18.8 billion and has since fallen by 13.3% to $16.37 billion at press time.