The decline in prices on the crypto exchanges, which has been described by some as a “bloodbath”, has continued. Michael Moro, CEO of Genesis Global Trading, has also commented on this. In a telephone interview with The Block, Moro said that for the first time, relatively early major investors had started shedding their bitcoin holdings. They had accumulated these when Bitcoin stood at around $ 1,000.
“We see that people who bought in early 2017 are now selling for the first time.”
The reason for this Moro said that these investors would come close to their cost base at the current price. The small investors who bought at the end of 2017 had already sold at the beginning of the year, added Moro.
Bitcoin at under $ 4,200
Bitcoin has hit a new low for the second time this week. It fell on the crypto exchanges Coinbase and Kraken on under 4,200 USD per Coin. The price of the crypto exchanges offering only crypto-to-crypto pairs, however, did not go below the $ 4,400 mark. The reason for this may be found in the pairing of Tether and Bitcoin.
Investor and commentator “The Crypto Dog” tweeted about the fall:
“In view of the Volume is still far from the ground. So far, this sell-off has been relatively weak (by volume). “
Gloomy Times for Bitcoin?
Given the weak market environment and the sharp fall in the Bitcoin rate is too suspect that the investors continue to repel. This is apparently even true for investors who bought Bitcoin when it was still between $ 1,000 and $ 2,000. These investors may sell significant portions of Bitcoin they hold for fear that the cryptocurrency may break large support levels. That would of course continue to depress the price.
Investors who invested in early 2017 are still 50 to 100 percent plus in their investments. Nevertheless, it should also be remembered that the crypto market has not experienced a correction of this magnitude since 2014. At the time, Bitcoin’s share price dropped more than 85 percent.
Bitcoin is still far behind its all-time high of $ 19,500 from an 85 percent price erosion. To experience a downturn of 85 percent, Bitcoin would have to fall to $ 2,950 per coin. In turn, the king of cryptocurrencies would have to go down 32 per cent from its current low of $ 4,400.
The next medium-term recovery for Bitcoin and the other major crypto currencies requires a new crowd of investors. If these investors, such as the institutional investors, get involved, there could be months of consolidation.
Sources: The Block, Twitter, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/bitcoin-crash-fruehe-investoren-stossen-ihre-bitcoin-bestaende-ab/
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