Both the charts above sum up the day quite well.
It is the prime example of how volatile Bitcoin really is. Almost every major cryptocurrency suffered massive correction during the daytime. Bitcoin was down 8% (losing over $400), Ethereum 10% and Ripple 14%, but by the time day was about to end, everything got back to ‘normal’.
Notable sell-offs occurred in multiple markets including Korea, Japan, and USD-trading Hong Kong saw Bitcoin price drop from a day’s high of $5,648 to a low of $5,210 on Bitfinex.
There are no clear indicators why Bitcoin price dipped so much in value. In China, President Xi Jinping is preparing to enter his second term as president. He addressed the Communist Party in a speech with big promises for China’s future. Since there are no changes in the top brass of Communist party, it is unlikely we’ll see any changes regarding the ban on all ICO-related activity within China.
As soon as the Bitcoin price dipped below $5160, it found support from many buyers. Volumes spiked and so did the price. In a matter of hours, Bitcoin started trading at $5660 once again. A lot of quick profit-taking by traders also took place during the day. At the time of writing, Bitcoin is trading at $5600, posting the market cap of $92.7 billion.
For whatever reasons the prices fell, Bitcoin is still looking at an optimal position to initiate another strong rally, primarily due to the rapidly increasing demand from institutional investors in major regions such as the US and Japan, and the decline in support for SegWit2x.
So far as the SegWit2x fork is concerned, within the past two weeks, major mining pools such as F2Pool have stopped signaling support for SegWit2x, while large Bitcoin communities in South Korea, Brazil, and Argentina have rejected the November hard fork.
Top Stories from the Crypto World
1. EEA adds 48 new members
Hewlett Packard Enterprise and 47 other organizations have joined 200-member strong Enterprise Ethereum Alliance. The list of new members is varied, drawn from the blockchain startup ecosystem as well as the IT, finance and academic worlds.
The most notable member to join EEA is HPE which has already been working with distributed ledger startup R3 to develop new solutions for its client base.
2. Bitcoin won’t replace cash: Bank of Canada
The Bank of Canada’s senior deputy governor has said that digital currencies like bitcoin are changing finance. However, she doesn’t believe it will replace cash.
She believes that unless there is a way for Bitcoin to function without relying on an electric grid, it’s unlikely to gain dominance.
Meanwhile, The Bank of Canada has been working on its own digital token.
3. Overstock share price could explode to 230%
According to an independent investor, Marc Cohodes, 230% rise in Overstock’s share price could take place because the company is leveraging Blockchain technology successfully.
“You’re not paying anything for blockchain and you’re getting retail at a steep discount,” Marc said. “I think the stock’s going to go to $100.” At the time of writing, Overstock is trading at $33.80.