Bitcoin And Other Cryptocurrencies Take A Nose Dive

Bitcoin and other cryptocurrencies were recently radically sold off!

This caused Bitcoin to lose its value at the rate of $200 per bitcoin in minutes. It had been as high as $8,000 and due to this sell-off, it fell below the psychological line of $7,000.

This sell-off was a sign of the recent volatility of the digital markets.

Bitcoin and other cryptocurrencies like XRP and Litecoin are virtual or digital currencies. They are created by using a type of programming called blockchain which is not controlled by any type of central government.

Their value is purely based on what happens in the digital markets. 

Cryptocurrencies like Ethereum, Bitcoin Cash, EOS, Litecoin and Binance were sold, causing them to lose billions of dollars in value. 

On the next day, Bitcoin lost 5% in value and became as low at $6,708 Bitcoin on the Bitstamp exchange in Luxembourg. It did recover briefly overnight.

XRP, Bitcoin Cash, Litecoin, Binance and EOS were quite volatile as they lost somewhere between 7% and 15% in value. The outlook is that they are probably heading lower. 

Why this sudden sell-off happened is not immediately known. The cryptocurrency experts have noted a drop in market trading volume recently. 

Many analysts believe that it is just a little bit too quiet on the crypto front. He added that tether, the biggest stable-coin in the world, is losing its domination. 

Bitcoin was once trading at $6,880, which was down 3.5% over the last 24-hour trading period, based on what Coinbase, the American based crypto exchange, The cryptocurrencies Bitcoin Cash, Litecoin, Ripple XRP, and Ethereum were sold off somewhere 5% and 8%. 

EOS, a decentralized token that is similar to Ethereum, went down the lowest of all the cryptocurrencies. 

Watchers, people who spend their time monitoring the cryptomarkets, did warn earlier in 2019 that terrible bitcoin volumes was a sign that the markets could be ending to a storm and to seems that the storm has arrived When volumes are low, the markets are vulnerable to what is called whale moving.

Whale (s) moving is defined by when a person places a huge buy or sell order at a little bit above or below-market rates. This kind of movement on the crypto markets could cause trading algorithms that send prices really higher or lower and could be the result of market manipulation. 

Kim Grauer, the senior economist at Chainalysis, a blockchain analysis company, believes that there will be continued downward pressure on the market.