After an eminent steady rise for the past few weeks, bitcoin finally tumbles. Bitcoin price plunges hard, marking the sharpest fall in 12 weeks. Due to the sudden decline, analysts start to question whether this circumstance will lead to more downfall or not.
Fails to beat the all-time high record, bitcoin price flunks instead
Bitcoin price flunked hard before breaking its all-time high record from three years ago. According to Coin Desk, the sudden dive is the sharpest to record in the past 12 weeks with over 12% fall over 24 hours. The recent update from Coin Desk marks that bitcoin currently values at around $16,514 right after previously hitting $19,474, just near its highest peak at $19,521. Accordingly, Reuters reported that ethereum also suffers from a 13% drop, followed by XRP’s 20% slip. Both altcoins have been fluctuating with bitcoin for the past few weeks.
Will this mark the end of bitcoin’s surge rally?
According to Ki Young Ju, CEO at analytics firm CryptoQuant, there is still a possibility for bitcoin to break through $20,000. Quoted from Coin Desk, Ki Young Ju said, “other long-term on-chain indicators like BTC and stablecoin reserve say the potential buying pressure still prevails so far.”
Speculations upon the sudden fall soon emerge. CEO of Coinbase, Brian Armstrong, voiced through his personal Twitter account that the dive in bitcoin price might relate to the U.S. Treasury Department’s rumoured plans to clampdown self-hosted cryptocurrency wallets.
Meanwhile, Reuters noted that Joseph Edwards of crypto brokerage Enigma Securities suggest the flunk is merely a reaction to the bitcoin euphoria. Edwards said, “this mostly feels like a reaction to that – over-leveraged markets took one small hit and suffered immensely.”
Read also: Bitcoin Price Shows No Sign of Dropping