Newsflash: Bitcoin Plunges to Under $3,900 as Bears Take Over

Bitcoin, the flagship cryptocurrency, has recently seen its price drop to less than $3,900 as the cryptocurrency bears have seemingly taken over what was so far being the largest bullish rally the crypto ecosystem had seen in a while.

According to CryptoCompare data, BTC is now trading at $3,860 after a massive red candle saw its price drop to a low close to $3,800, before it seemingly started to recover. Despite the massive sell-off, BTC is still up by 6.2% in the last two weeks.

Bitcoin's price performance in the last 24-hour period

The cryptocurrency hit its all-time high near $20,000 in December of 2017, and hit a low of $3,200 in December of last year. Its price has since then been recovering, and managed to surpass the $4,000 mark this weekend.

The bullish rally is believed to be related to increasing adoption and the ongoing development of its layer-two scaling solution, the lightning network (LN). As CryptoGlobe recently covered Bitcoin’s LN ‘torch’ recently reached Fidelity Digital Assets, which is set to launch its crypto custody service next month.

Currently, there are various fun, interesting use cases for the layer-two scaling solution. While what is currently behind the recent sell-off is unclear, analysts are pointing to technical indicators to justify it.

Mati Greenspan, a senior market analyst at eToro, noted that "what comes up must come down," and that the sell-off is a reminder that the cryptocurrency space is an extremely volatile and risky one.

The sell-off, which has seen over $10 billion leave the crypto ecosystem, has seen most altcoins turn red as well. At press time, ether, EOS, LTC, XRP, and BCG are all down between 2.5% and 6%, while TRX, ETC, and ZEC are down between less than 1% and 1.7%.

NEO, however, is seemingly bucking the bearish trend along with Ontology, as these tokens are 6.6% and 7.4% respectively. Ontology, as covered, is seeing its development platform get released on Google’s cloud marketplace.

Argentina’s Smallest Currency Denomination Now Worth Only One Satoshi

Michael LaVere
  • Argentina's smallest currency denomination, the centavo, is now worth one satoshi.
  • The country is in the midst of a currency crisis, with the inflation rate reaching 50 percent. 

Argentina’s smallest unit of currency has slumped in value to now be worth the equivalent of one satoshi. 

The Centavo, which has been in circulation since 1854, has joined the Lebanese Lira and Vietnamese Dong in being the same value as the smallest denomination for bitcoin. 

The currency’s fall in value was noted by Argentinian Reddit user u/OneMoreJuan, who used the Centavo’s plight as an example to invest in bitcoin. Another user in the comments claimed that scrap material for the Centavo was now worth more than the coin itself.

Argentina is one of several South American countries to undergo hyperinflation and currency crisis in recent years, with the government defaulting on its loans a record nine times. The country entered its third year of recession prior to the start of the coronavirus pandemic, after undergoing an economic crisis that first began in 2018. 

According to a report by Bloomberg, Argentina’s inflation has outpaced expectations, with the current rate reaching roughly 50 percent. 

Argentinians have responded to the devalued fiat by turning to bitcoin and crypto-assets in droves. Data aggregator Coindance shows a significant spike in weekly LocalBitcoins volume for Argentinian customers since the start of the year, reaching as high as $70 million in May.

Featured Image Credit: Photo via Pixabay.com