The Bitcoin pullback that started over the weekend has accelerated as we hit mid-week. During yesterday’s US trading session BTC dropped below the highly critical $10,000 level and has failed to reclaim it as we roll into another day’s trading.
Bitcoin Drops Below $9,300
Since the weekend BTC has dumped 20 percent as the selloff accelerates. From an intraday high of $10,750 yesterday, Bitcoin dumped almost $1,400 back to a low of around $9,260 a few hours ago. A very slight recovery has returned prices to the mid-$9,000s but the likelihood of further gains is high.
Recent comments from US Treasury Secretary Steven Mnuchin may have accelerated the pullback but in reality one was overdue anyway. Mnuchin did recognize Bitcoin as a store of value and it received further endorsement from US House Representative Kevin McCarthy who admitted to ‘liking Bitcoin’.
That did not stop the bears though as the slide back to four figures resumed. Trader and analyst Alex Krüger aptly pointed out that pullbacks should be welcomed in a bull market.
“Bull market corrections are unavoidable and should be welcome. Assets that go too far up too fast tend to crash the hardest. As everyone who speculated with the price of bitcoin during 2017 and 2018 well knows.”
Bull market corrections are unavoidable and should be welcome. Assets that go too far up too fast tend to crash the hardest. As everyone who speculated with the price of bitcoin during 2017 and 2018 well knows.
— Alex Krüger (@krugermacro) July 16, 2019
Serial bitcoin hater and permabear Nouriel Roubini was practically jumping for joy with this rather acerbic tweet today.
“Bitcoin has crashed by almost 30% in the last week and over 15% in the last day. As Congress, Mnuchin, Trump and myself point out that the criminal scams of crypto shitcoins-land will be cracked down on, the scammers and criminals know their days of unregulated casinos are gone!”
Bitcoin has crashed by almost 30% in the last week and over 15% in the last day. As Congress, Mnuchin, Trump and myself point out that the criminal scams of crypto shitcoins-land will be cracked down on, the scammers and criminals know their days of unregulated casinos are gone! https://t.co/6ncsfBFaX9
— Nouriel Roubini (@Nouriel) July 17, 2019
What Dr Doom forgets is that Bitcoin has corrected by over 30 percent eight times during the previous bull run and this is just the second so far in the current uptrend. Of course there is a criminal element with crypto, as there is with cash and the internet, bad actors are everywhere. Regulation is necessary and actually welcomed by most in the crypto industry so Roubini’s rabid ranting is a little imprudent.
Crypto Cap Dumps $30 Billion
A further $30 billion has flowed out of cryptocurrency markets in the past 24 hours but this story is nothing new. Bitcoin’s dominance remains a healthy 67 percent meaning that, as usual, the altcoins have bled out harder, many dumping double digits today.
Ethereum has matched Bitcoin’s decline with 12 percent as ETH teeters on the $200 level. A drop is inevitable if BTC has yet to find its floor in this correction. Several of the other higher cap coins are also in a world of pain today, they include Litecoin, EOS, BSV, Tron, Monero, Dash, Chainlink, IOTA and NEO.
Image from Shutterstock