In the past few months, Bitcoin has seen a surge in price, but in just 24 hours it lost nearly 15% of its value, going under $10,000. Meanwhile, the three top crypto by market capitalization have also seen a fall in price – Ethereum, Ripple’s XRP, and litecoin have each lost somewhere between 5% and 10% in value in one single day.
Last month, Bitcoin was trading on Bitstamp with year-to-date highs of $13,880 per Bitcoin. This morning, it went down to $9,710. At the time of writing, Bitcoin slowly rose to $10,084.
The price sell-off of bitcoin, ethereum, Ripple XRP, and litecoin are a sign of the violent breakdown crypto analyst Joe Saz spoek of:
“We fell off a cliff here, supported by the bottom of this descending triangle. I believe this descending triangle is going to be a violent breakdown. I don’t typically have a red flag emergency, but it’s looking very bad right now.”
“It will get to zero in due time”
While Bitcoin did experience wild swings in the past, analysts said that it could go either as high as $20,000 or fall as low as $3,000.
Long-time critic Nouriel Roubini (US economist) noted that the bitcoin price will fall to zero:
“Its true value is negative, not zero, given its toxic externalities! It will get to zero in due time.”
The price of Bitcoin went up in the past months, rising more than 200% since the beginning of 2019, as the world’s biggest tech companies – Apple and Facebook, for instance – are more interested in cryptocurrency. Facebook made its entrance in the crypto sector with Libra, so this move might add more legitimacy to the sector.
Nonetheless, the senior market analyst at global investment platform eToro, Mati Greenspan, said in a clients note:
“The deep pullback last Wednesday night was like a bucket of ice water that was dumped on the anxious crypto market, which was indeed getting a bit too hot. The prospect of prices rising too far too fast had some traders feeling fearful, so it’s good to see things relaxing somewhat.”
The market now has to figure out where to go after the surge and sell-off.