Everybody who engages in cryptocurrency knows just how volatile the crypto market is, so it shouldn’t come as a surprise when something outlandish happens— however that does not make it any easier to handle. In the space of just two hours, Bitcoin has fallen by 5.10%. The last time Bitcoin was this low was on August 31, meaning that all of September’s gains have been lost. This was truly a “blink and you’ll miss it” situation as there was very little to suggest this would happen in such an abrupt fashion. While there were people who were clearly skeptical that Bitcoin would continue to climb, very few were expecting it to plummet like this.
Crypto market follows Bitcoin’s dip
Bitcoin wasn’t the only coin to fall, most of them did. A visit to CoinMarketCap reveals that out of the top 100 cryptocurrencies by market cap, 94 of them are dropping. The six coins and tokens which are not are: Bitcoin Diamond, MOAC, Dropil, TrueUSD, TenX, and Tether (which doesn’t count as it’s a stablecoin). As is to be expected, this has dragged the global market cap down to $222 billion. Just two hours ago, the market cap was resting comfortably at $238 billion. That is an overall fall of 7.20%.
Is market manipulation to blame?
It is going to be a struggle to find a reason for this type of drop in the crypto market, as this behavior seems somewhat devoid of reason. Technical analysis is proving to be mostly useless right now. Some have already taken to Twitter and Reddit to claim that this is only possible if you factor in market manipulation. The problem with this line of thinking is that market manipulation is notoriously hard to prove, and for the last year, it has been regularly stated by crypto fans whenever they don’t like the chart movements. While it is certainly possible that market manipulation was the cause of this, it is also possible that this movement is natural. While it is unusual, it is not unheard of for a market to plummet so sharply. And it is certainly not unheard of for that to happen to the crypto market.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.