On Wednesday, Bitcoin sold off. Over the past ten days, the number one crypto began to decrease in price dramatically. Industry specialists and investors are discussing this issue.
On CoinDesk, the prices of bitcoin were changing around $38,732,57. It is a remarkable change since it touched the lowest in the season that was $30,201.97, before increasing again.
Ether prices on the blockchain were 23% at $2,608.85 after touching 1,902.09, and dogecoin was around 26%, changing at 35.9 cents.
When bitcoin changes, the rest of the crypto changes because the dominant asset has become a very important player in the industry.
According to CoinMarketCap.com, markets of crypto shaved more than $855 billion from combined market value.
The stock market also experienced actual selling on the day, which was diminished by the closing bell. The Nasdaq and S&P 500 index suffered losses on the third day in a row.
Bitcoin is decreasing, but it represents an asset that is known for volatile periods.
It now experiences a slump period not related to one event or some news pieces. However, it was blamed on uncertainty, fear, and doubt. China was reportedly cracking down on the use of digital assets.
Meanwhile, people also blamed Elon Musk, a crypto enthusiast, for tanking the crypto industry with his tweets. Earlier this month, Musk announced that he would no longer allow bitcoin as a payment method for purchasing its cars.
Musk played one of the critical roles in the crypto industry. His tweets about bitcoin and dogecoin supported an uptrend.
What Analysts Say About Bitcoin’s Recent Changes?
Analysts say that institutional investors seem to be moving away from bitcoin back to traditional gold.
On Wednesday, losses increased due to leverage. It forced margin calls at some crypto trading platforms.
Bespoke Investment Group said that the average drawdown is close to 55% and 68%. Bitcoin remained down over the past decade, more than 45%.
Over the past eleven years, Bitcoin has seen more than 755 instances where prices changed daily by 6%. According to Dow Jones Market Data, more than 235 instances have moved by at least 25%.
CEO and founder of Allnodes, Konstantin Boyko-Romanovsky, wrote in emailed comments that the correction in the crypto market is a well-known phenomenon. However, it doesn’t mean that a market is underway.
However, the past performance does not guarantee future results, but bullish investors still believe in long-term ownership of bitcoin.