A Normal Day in Crypto Markets Paradise
The crypto markets continue to experience a strong correction today as overall market cap slid by 9.7% to $2.58 trillion at the time of writing.
Negative gains were experienced across the board, although some more than others. The Graph (GRT) suffered the most with a massive 18.86% pull back.
However, the question on everyone’s lips at the moment seems to be ‘will Bitcoin hold the $60,000 level?’.
Bitcoin Fighting to Hold $60,000
After another week of tumultuous crypto markets activity, the price of Bitcoin (BTC) fell again Tuesday morning to just over $59,000, recording a drawback of 9.97% in the previous 24 hours.
As the largest and most well-known cryptocurrency, the price action of Bitcoin leads the way and is often used as an indicator of general market sentiment.
While this pull back may worry some, and certainly doesn’t look good on paper to many, it is just another day in the crypto wild west. Indeed, an anonymous crypto wallet made a massive purchase of 207 Bitcoin at an average price of $62,000, which clearly demonstrates buyer confidence in some areas of the market.
What is the cause for this market pull back? Crypto sentiment has never been so high leaving many puzzled by this latest move.
After a month of all-time highs and many commentators calling for $100k by even the end of November, this shake down may be seen as inevitable.
Crypto derivative products like Options and Perpetual Futures are hugely popular on leading exchanges, and when crypto prices stack too heavily against the exchange, corrections on this scale often happen. Indeed, what many saw as a massive leverage correction only happened less than two weeks ago.
Market May be Heating Up
So, is this an indication that the market is heating up and getting close to a top as more and more people jump on the crypto train? Possibly.
Personally speaking, I think we have another three to six months before we experience a significant market retracement which may last a considerable amount of time.
As mentioned previously, the Plan B model seems to be playing out perfectly with a $100k Bitcoin expected by Christmas and a possible $135,000 Bitcoin price before the end of this bull run cycle.
Overall, today’s market pull back only really affects traders and those who are using considerable risk by opening leveraged positions. To long term investors this kind of price action is just another ‘normal’ day in crypto paradise. But will regulation and the SU securities and exchange commission (SEC) have something to say about this? Only time will tell.
Author: Mark Harridge
Mark Harridge first came across Bitcoin and began to use its peer-to-peer payment network in mid to late-2011. He quickly understood that this technology would change the world. Mark is passionate about crypto adoption, from a macro economic and institutional perspective, and the numerous factors that fuel the relentless march towards individual self sovereignty and the decentralised society of the future.