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Sharp correction: The price of Bitcoin fell by about $ 3,000 in one day
In the last day, large holdings of bitcoin have been recorded on crypto exchanges, and the price of digital currency has fallen by about 12 percent.
Yesterday, Bitcoin reached a level of about $ 19,390 - its highest price since December 2017, and close to an all-time high
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Bitcoin
Roy Katziri
Thursday, 26 November 2020, 12:20
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After a two-month rally, the cryptocurrency market has experienced a sharp correction in the last day.
During trading on the crypto exchanges yesterday (Wednesday), Bitcoin reached a level of about $ 19,390 - its highest price since December 2017, and close to an all-time high.
However, around 11:00 this morning, the price of Bitcoin fell to a low of about $ 16,530, according to data from the CoinMarketCap website.
About an hour later, Bitcoin, the largest currency in the crypto market, was traded at an average price of about $ 16,850 - 12% lower than its price 24 hours earlier.
From past experience, the price of bitcoin has generally fallen as a result of large realizations of holdings in exchanges that trade in derivatives of cryptocurrencies.
According to the American website The Block, in the last 24 hours, these exchanges have recorded realizations totaling almost $ 1.9 billion.
Among these exchanges, Binance, which is considered the largest crypto exchange in the world, recorded the largest volume of realizations - about $ 840 million in the last day, followed by the Huobi and OKEx exchanges.
Justin D'Anten, managing director of digital investment firm Diginex, commented on the fall of Bitcoin this morning and told Reuters that "with very large trading volumes on leveraged markets, it is not surprising that after Bitcoin failed to break its all-time record, there is Such a quick fix in the markets. "
Crypto market analysts note that the rally of Bitcoin in recent months is different from that experienced in 2017, mainly because today there are relatively more institutional investors in the market, such as hedge funds and family offices, and fewer retail investors.
According to Eli Mizrach, CEO of the Israeli investment house Silver Castle, "According to a study published last June by Fidelity, one of the largest financial managers in the world, about a third of large institutional investors already own crypto assets such as Bitcoin.
"In the United States, 27% of financial entities, including family offices, investment advisers, pension funds and hedge funds, hold crypto assets, compared to only 22% a year earlier."
In an analysis written by Mizrah, published this morning in "Globes", he noted that in his estimation, "there may be a correction in the price of bitcoin in the short term, following the Profit Taking moves of institutional players entering the crypto market. .
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