Bitcoin Falls and Pulls the Market Down
The price of Bitcoin has dropped from $8390 to $7285 at the time of correction. Subsequent to the drop of BTC, the majority of altcoins gone red as well.
In the last 24 hours, bitcoin dropped by 9.43%, up to $7285. On May 16, 2019, its average price was $8390 until the start of the correction. Other currencies dropped.
Ethereum fell by 8.47% up to $239. XRP - by 15.02%, now it is estimated at $0.38. Bitcoin Cash fell in price by 13.34%, up to $361. Any of top-20 coins, except for Tezos, are in the red zone.
According to the Coindesk analyst Sebastian Sinclair, the reasons for the sharp Bitcoin fall could be attributed to large sell-orders liquidating numerous stop-loss positions and invoking general panic amongst traders. A stop-loss is an order limiting the losses, which closes the bids automatically as soon as a price reaches a certain point.
“Indeed a sell-order on the Bitstamp exchange for example, of 3,645 BTC or $26.8 million in US dollar terms, was executed at around 02:00 UTC on May 17 and could have been one of the major causes for a dip below $7,000.”
We recall that the shorts totaling 10,500 BTC ($85 million at that rate) were closed the day before on the trading platform Bitfinex. The cumulative volume of shorts decreased by 40%, it fell to the level of March 2018.