Bitcoin, the largest digital currency by market value, has recently been locked in tight trading ranges with low volatility. Those trends appeared to end Wednesday when the cryptocurrency tumbled below the psychologically important $6,000 price level.
Bitcoin was trading at $5,590 with a market cap of $97 billion at 1pm Eastern on Thursday.
Cryptocurrency market observers expecting more fourth-quarter action out of bitcoin are probably disappointed as the largest digital currency by market values remains mired in a tight trading range.
Bitcoin’s all-time high of around $20,000 was seen in December 2017 and the digital currency has not even been close to flirting with those levels this year. Some market observers believe a return to $10,000 anytime soon will be challenging.
“The world’s largest cryptocurrency hit its lowest level of the year, falling as much as 9 percent to a low of $5,640.36, according to CoinDesk. Bitcoin had been trading comfortably around the $6,400 range for the majority of the fall, a stark contrast from its volatile trading year,” reports CNBC.
Among the myriad issues facing bitcoin and other cryptocurrencies is adoption. As in when cryptos will become more widely accepted and used for mainstream activities, such as basic payments and money transfers, on a larger scale.
Chart Courtesy: CoinMarketCap.com
Bitcoin Not Alone
Wednesday’s crypto carnage was not limited to bitcoin. As of midday Wednesday, 11 of the top 15 digital currencies by market capitalization were saddled with double-digit intraday losses.
“Other cryptocurrencies fared even worse on Wednesday. Ether fell as much as 13 percent while XRP, the third largest cryptocurrency by market capitalization, dropped 15 percent, according to CoinMarketCap.com,” reports CNBC. “The rout is likely being spurred by uncertainty around bitcoin cash, according to founder and CEO of BKCM, Brian Kelly.”
Trending: Bitcoin Volatility Probes New Lows
Momentum plays an important role in when to buy bitcoin, but what may be surprising is that buying the cryptocurrency after it has experienced big rallies can be a winning strategy. Some crypto market observers believe the long-term outlook remains encouraging for the largest digital currency. However, This has been a brutal for the broader market cryptocurrency space in terms of lost market value.
“The entire cryptocurrency market capitalization dropped by $15 billion over 24 hours Wednesday, according to CoinMarketCap.com. The total market cap $85 billion, down more than 70 percent since the start of this year,” according to CNBC.
For more information on the cryptocurrency market, visit the Bitcoin category.