Bitcoin, the flagship cryptocurrency, has recently seen its price drop below the $4,000 mark and is currently threatening to retest the lowest point it’s been at in 14 months, as it’s getting close to the $3,600 mark.
According to CryptoCompare data, the cryptocurrency has already lost about 7.1% of its value in the last 24-hour period, and is currently trading at about $3,850. Its market cap is at $67.1 billion.
As CryptoGlobe covered, bitcoin hadn’t dipped below the $4,000 mark since September of last year, before its price surged to a near $20,000 all-time high and subsequently started dropping.
Speaking to MarketWatch Danny Scott, the CEO and co-founder of Isle of Man-based cryptocurrency exchange CoinCorner, revealed a bitcoin sell-off is something he’s seen time and time again, and as such isn’t concerned.
If we look back over bitcoin’s short 10-year history, it has experienced many price fluctuations—something that is to be expected given that the industry is still very young.
Per his words, there have been various sizeable price movements in bitcoin’s history that only those in the industry have noticed. As an example, he cited a time in 2013 in which BTC’s price dropped nearly 50% in two weeks, a sell-off bigger than the one we’ve seen in the last 14 days.
CryptoGlobe reached out to eToro senior market analyst Mati Greenspan to further understand what’s going on. Greenspan revealed the cryptocurrency has a light support at the $3,500 mark, and a heavy one at the $3,000 mark. As such, it isn’t surprising to see BTC drop below $4,000.
He pointed us to a tweet in which he claimed the $4,000 mark was “never an important level anyway.”
Reposting this chart from four days ago. $4,000 was never an important level anyway.— Mati Greenspan (@MatiGreenspan) November 25, 2018
Next area of support is between $3,000 to $3,500. https://t.co/YvtDePt9dR
The cryptocurrency’s price drop notably came amid mixed developments. As covered a report recently published by CoinShares revealed nearly 80% of bitcoin mining is done using renewable energy sources. Nevertheless, the price drop has been brutal on miners, as some have been forced offline over a lack of profitability.
Other top altcoins are curiously all performing worse than BTC. Ethereum’s ether and the XRP token are among the best ones, and they’re still down 8.05% and 5.2% respectively, as they’re trading at $107.1 and $0.34.
Litecoin, Dash, and EOS are all down over 10%, while Tron’s TRX and BCH have dropped 7.7% and 6.5% in the last 24 hours, respectively. Privacy-centric coins XMR and Zcash are also both down about 10%.