by Marco Rossi
For this week’s report we should point out the elephant in the room: BTC fell dramatically on the afternoon of 9/24.
The so-called “king of the cryptos” witnessed a sudden recession which brought it from roughly $9,835.09 in the morning to a low of around $8,226.70 after the crash, and it kept decreasing reaching $7,755.36 on 9/30:
Since then, BTC slightly recovered against USD, overpassing again the $8,000 threshold. As of today, it stands at $8,259.10.
However, besides the overall fall, what is interesting is that the price decrease of more than a thousand dollars abruptly.
Sure, it has not been the first and most sudden change BTC had against the USD, but cases of such volatility happened when the price was above $10,000 and was subject to a wider speculation. No one would expect, instead, a very high volatility during a plateau.
With the available data and considering that the crypto market’s trends have a purely speculative basis, what CoinGenius understands of this is that there has been a huge sale by a large player — or a group of players.
Such sale, thus, influenced the market making the price of BTC crash until a point where buying it would be profitable again.
Obviously, this had a knock-on effect on the entire cryptomarket, with also the other coins suffering from recession this past week.
However, we should also notice that their relation with BTC has had a somewhat resilience, especially in the case of ETH:
Meanwhile, LTC did fall, but not as dramatically, showing signs of stability and possible recovery:
Although the abrupt decrease in BTC against its main point of reference, the USD, the trends internal to the market (i.e. the spread between the other coins and BTC) were affected on a limited basis.
Signs of resilience in times of crisis, after all, are what makes us understand a “prototypal” industry, such as the cryptomarket, can develop into a full-fledged market of reference, with its own stability and trends.
BTC might have brought the entire market down this last week. But it does not necessarily have to have a tragic implication. The search of stability passes through ups and downs and, probably, this won’t be the last time even.