Bitcoin has suffered two flash crashes over the last 24 hours and is currently trading below the $60,000 mark, having reached close to $64,000 at the start of the week.
Ethereum, Solana, and Cardano also slipped overnight by between 5-15 per cent amid a market-wide slide that was notably bucked by the meme coins Shiba Inu and Baby Floki Billionaire.
The dogecoin spin-offs are up by 42 per cent and 69 per cent respectively on Wednesday morning, according to CoinMarketCap’s price index, with the former spurred on by calls for it to be listed on the popular trading app Robinhood.
The gains were not enough to prevent the overall crypto market from dropping below $2.5 trillion.
Even though BTC has slipped over the last 24 hours, some analysts continue to predict new all-time highs before the end of 2021.
We’ll have all the latest news, analysis and expert price predictions in our live coverage of the crypto market below.
Bitcoin in banks?
In what would be a major development for the crypto space, regulators in the US are reportedly developing guidelines for banks to hold bitcoin and other cryptocurrencies.
The chair of the Federal Deposit Insurance Corporation (FDIC) told Reuters that it was important to bring this activity inside the banks, otherwise “it is going to develop outside the banks” and “the federal regulators won’t be able to regulate it”.
The move could launch a new wave of BTC and crypto adoption and make holding cryptocurrencies much more secure for the average user.
You can read the full story here.
Though regulators have not issued guidelines, some banks are offering services related to digital assets
Bitcoin price crash sees ‘more buyers than sellers’
Following bitcoin’s flash crash, which took most of the crypto market down with it, we’ve heard from some crypto experts to get their thoughts on what caused it, and what comes next.
Freddie Evans, a sales trader at the UK based digital asset broker GlobalBlock, says that there are “more buyers than sellers in this morning’s session so far”, confirming the “buy the dip” mentality that has been prevalent across social media this morning.
Here’s what he told The Independent:
Defiant bitcoin investors ‘buy the dip'
Bitcoin investors, traders and analysts are reacting to the latest crash on social media, with a large portion defiantly describing it as a “flash sale”.
One writes: “Buy the dip, thank me later”.
Meanwhile, pseudonymous Dutch analyst PlanB, whose widely-vaunted bitcoin price prediction model puts the cryptocurrency on track for six figures this year, remains firmly undeterred by the dip.
Small and stoploss traders selling their holdings will ultimately be the big losers, he claims, while “big market players” will scoop up the discounted bitcoin and hold it to new highs.
Bitcoin price crash in context
Bitcoin’s flash crash looks severe when viewing hourly charts, but it’s nothing new for a cryptocurrency accustomed to massive price swings.
Two similar dips in terms of scale and timeframe were also seen last month, which were followed just a few weeks later by a new all-time high. Some analysts point to such downturns as a signal that the market has turned bearish, while bullish analysts typically describe them simply as price corrections that allow BTC to consolidate gains in preparation for another leg up.
Here’s how the latest flash crash looks when zooming out on bitcoin’s price movements over the last 12 months.
BREAKING: Bitcoin price crash causes mini collapse for market
Bitcoin is still falling, crashing below $59,000 and taking its total losses to more than $5,000.
It’s had a massive impact on the overall market, with several leading cryptocurrencies now down by more than 15 per cent – you can read more here.
The price of bitcoin has crashed on Wednesday morning, dropping by thousands of dollars in the space of just a few minutes.
Bitcoin price tumbles below $60,000
The price of bitcoin has dropped below $60,000 following two minor flash crashes on Wednesday morning.
It is now down by roughly $4,000 since this time yesterday, with blockchain data suggesting that the price dip is a result of long-term BTC holders taking some profit’s after the recent all-time high.
Bitcoin briefly dipped below $60,000 last week but immediately rebounded, so the next few hours will prove key in determining whether or not it has found solid resistance at this level.
Bitcoin has slipped in value by over 3 per cent in the last 24 hours and is currently valued at close to $60,500.
Ethereum, cardano, and solana have also dropped in price by about 1 to 3 per cent compared to their values a day earlier.
Among meme coins, while dogecoin has slipped by about 3 per cent, shiba inu coin has surged by more than 16 per cent in the last 24 hours.
The global crypto market has dropped in value by about 2 per cent in the last day and is currently valued at about $2.57 trillion.
Bitcoin price prediction model still on track?
Bitcoin’s refusal to shift very far from the $63,000 mark as October comes to a close fits with a forecast made back in June.
The pseudonymous crypto analyst PlanB, who has gained more than a million Twitter followers over the last year as a result of his highly-regarded Stock-to-Flow model, made a prediction four months ago about what bitcoin’s price would be for each remaining month of 2021.
He predicted BTC’s closing price for both August ($47,000) and September ($43,000) to within a fraction of a per cent, and puts October’s price at $63,000. The final couple of months will prove the most eventful, according to his prediction, reaching six figures by Christmas.
You can read more about PlanB’s price prediction model here.
Bitcoin expert says ‘this week will be key’ for crypto market
With bitcoin continuing to hover around the $60,000-$64,000 region, one crypto industry figure has described the next week as being “key” to determining the direction of the market over the next few months.
Tim Frost, CEO of decentralised finance platform Yield App, tells The Independent that market momentum could shift in Ethereum’s favour over the coming days if BTC fails to build further on its October gains.
“Ethereum is perhaps at that mythical moment of ‘the flippening’ where it moves higher than bitcoin in terms of price momentum,” he says.
“This week will be key to see if that in fact transpires, as it will be to see whether or not bitcoin will push through its previous all-time high for anything more than two minutes. The bulls are still gunning for a three-figure end to the year, although somewhere between the range of $70-$90,000 is likely more realistic, with three figures potentially transpiring towards the end of Q1.”
China reconsidering bitcoin ban?
One of the driving forces behind bitcoin’s spectacular price crash between April and July was China’s crackdown on crypto mining.
Now reports suggest China could be reconsidering its ban, which cryptocurrency experts say could supercharge BTC’s price rally. One industry figure tells The Independent that it would “almost certainly act as a significant catalyst for bitcoin’s price and the crypto market as a whole”.
The collapse of China’s bitcoin mining share, as this graph shows, mirrored the price drop of the cryptocurrency in mid 2021, as miners were forced to shut down operations.
So how likely is a reversal of this policy, and could China introduce more favourable regulation for bitcoin trading? You can read the full story here.
Move could be ‘significant catalyst for BTC price and market as a whole,’ crypto experts speculate
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