Summary
- Reported that Bitcoin's price fell below $100,000 and plunged 20% from the peak.
- Stated that a risk-off phenomenon on Wall Street, a sell-off in tech stocks, and the U.S. federal government shutdown are factors behind the cryptocurrency decline.
- The Fundstrat official pointed out that whales' selling pressure is clearly emerging.
20% plunge from the peak
Cryptocurrency selling continued, causing Bitcoin to break below $100,000.
According to CoinMarketCap at 5:20 AM that day, Bitcoin's price was $99,969, a sharp 6.28% drop from 24 hours earlier.
This is the first time Bitcoin's price has fallen below $100,000 since June. Bitcoin has plunged more than 20% from its previous high (126,000 dollars).
The decline in Bitcoin's price is attributed to a risk-off phenomenon on Wall Street and a broad plunge in tech stocks amid concerns over Palantir's overvaluation.
Also, the ongoing U.S. federal government shutdown appears to be contributing to the cryptocurrency sell-off.
Other cryptocurrencies are also plunging across the board. At the same time, Ethereum, the No. 2 by market cap, is trading at 3,162 dollars after a 12.39% plunge. Ripple, No. 4 by market cap, is down 8.22% to 2.13 dollars; Binance Coin, No. 5, is down 8.73% to 904 dollars; and Solana, No. 6, is down 8.83% to 151 dollars.
The previous day, Bitcoin fell 3% and Ripple fell 5%, among broad declines. Today, the losses have widened further.
Sean Farrell, head of digital assets at Fundstrat, pointed out, "Whales are selling off large amounts of cryptocurrency to avoid risk."
Shin Yong-hyun, Hankyung.com reporter yonghyun@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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