Wipeout!! Bitcoin swings from $24,000 to $6,400 in less than 24 hrs

September 6, 2018 1:17 pm


It’s not a joke. Markets are scrambling to figure out just what happened. Doctors across the world are on high alert.

Here’s how this happened the last 24 hours.

Related: 1 reason why Bitcoin will swing hard 9 times the next 2 months

BTC hits $24,000…in Iran

Bitcoin (BTC) hits $24000 In Iran as the government recognizes Crypto Mining a valid industry.

The deputy for innovative technologies at the Central Bank of the country, Nasser Hakimi, has stated that a review of Iran’s blanket cryptocurrency ban will be reviewed with an announcement expected in September on mining and virtual currencies.

AMEinfo had reported that Iran is looking into approving cryptos in order to circumvent US sanctions on oil exports from Iran, among other crippling restrictions imposed on the country,  after the US withdrawal from the 2015 nuclear agreement.

Crypto Daily said the price of BTC in Iran is around $24000, according to the exchange platform in Iran, Exir, bringing the value of BTC above the previous all-time record of $20,000 in the country.

“The Central Bank of Iran is ready to set draft a framework of policies for the cryptocurrency mining industry. Iran’s Supreme Council of Cyberspace’s Secretary, Abolhassan Firouzabadi has said that the policy is aimed to be drafted in the next 18 days,” reported Crypto Daily.

“Firouzabadi has also said in a statement to IBENA that launching a digital currency on a national scale looks promising.”

Related: Iran goes crypto to evade US sanctions despite $5.77m Bitcoin bust

Sudden drop to below $6400

Cryptocurrency prices plunged across the board suddenly and sharply Wednesday morning.

Having been steady at about $7,350 a coin during most of trading during both Asian and European morning hours, BTC lost more than $200 in mere minutes before later dropping below $7,000 mark and falling to $6,894 a coin, a fall of 6.3% on the day yesterday, according to Business Insider.

At publishing today BTC stood at $6,398, another 7.5% drop.

BTC was the most obvious casualty of the sudden sharp fall, but other major cryptocurrencies including ether, Ripple’s XRP, and BTC cash fell even more steeply. Here’s the scoreboard:

1-Ether -15.4% at $241.30

2-Ripple’s XRP -13.5% at $0.2857

3-BTC cash -15.8% at $527.23

4-Litecoin-11.7% at $59.8

CNBC said digital currencies often move in tandem, pulled by the fortunes of BTC — which far exceeds its peers in terms of market size.

Despite recovering a bit from its earlier daily low, BTC is still down about 12% over the last 24 hours, according to CoinMarketCap.

After the initial sell-off, cryptocurrencies continued to fall after Business Insider reported that Goldman Sachs has shelved near-term plans for the launch of a BTC trading desk.

Read: Market bullish on Bitcoin, but future prices hinge on 1 key issue

$6,000 next?

Bloomberg’s “Charting Futures” segment said that the dollar is moving relatively higher than BTC which may indicate that BTC could be in for a rough ride.

FX street said BTC has lost over 12% on recent 12 hours and dropped below $6,500 handle and touched $6,272 low for the first time in two weeks.

The total cryptocurrency market lost over %35 of its value as its capitalization slipped to $203 billion. All major altcoins followed the lead and lost 15%-20% in the same period.

Goldman’s decision to put on hold its plans to launch cryptocurrency trading desk due to regulatory uncertainty was a significant driver behind the setback on the market, according to FX Street.

Fortune said previous reports had indicated that Goldman was hoping to set up a trading desk for BTC and other cryptocurrencies by the end of June.

“Now, Business Insider says, officials at the investment firm realized that more steps would need to be taken for a regulated bank to trade BTC, including factors beyond Goldman’s control,” reported Fortune.

“The announcement came as another blow after SEC’s decision to reject BTC ETF application, which may be interpreted as an evidence that the industry is not ready for institutional adoption yet,” said FX Street.

“From the longer point of view, BTC/USD is moving within a triangle pattern with the lower line at $6,000. This level is likely to stop the carnage and initiate an upside correction; however, once it is broken, the price might enter a phase of uncontrollable free fall.”

Read Cryptos: The next price is anyone’s guess but are they here to stay?

BTC/USD, the daily chart- FX Street

 

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Hadi Khatib
By Hadi Khatib
Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it.



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