There is something behind every flaw in the world’s number one cryptocurrency, and many are determined to find out who and what contributed to the crash. Some believe that one of the factors behind yesterday’s (11/01) price drop to USD 30,700 per bitcoin may be the US dollar.
If “we are really looking for a motivator more than cause and effect to explain the retraction [de segunda-feira], in addition to the obvious element “what goes up must go down”, would be the apparent correlation [de segunda-feira] with the US dollar, which has recovered strongly from its own casualties [na segunda-feira] ”, wrote Mati Greenspan, founder of Quantum Economics, in his newsletter yesterday, adding that stocks and commodities are also weakening as the dollar strengthens.
Greenspan added that there is no one who can “say exactly where this is going to turn, or when the pain will end”, but to him, that price action seemed “strangely reminiscent of the 2017 downturn in the bull market”.
Meanwhile, Vijay Ayyar, Head of Business Development with crypto exchange Luno, was quoted by Bloomberg saying that if the US dollar index “passes” level 92 (currently at almost 90.5), “then we may have seen a maximum bitcoin in [USD] 40,000. “
At the same time, others are pointing to another possible cause behind the accident, one that has been criticized before. Crypto researcher and analyst Willy Woo tweeted that spot market settlement started at around $ 38,000, “so Coinbase partially failed, not registering purchases, causing its price to be [USD] 350 lower than others, which pulled down the price of the index that futures exchanges use to calculate leverage financing, destroying the destruction of speculative markets. “
He further argued whether futures exchanges should have “removed Coinbase from its index during the incident to protect the situation.”
Alistair Milne, investment director at Altana Digital Currency Fund, commented that Coinbase traded “at least 1000 less” than its competitors Bitfinex and Binance.
CNN Business argued that bitcoin is now in a bear market, but Naeem Aslam, chief market analyst at AvaTrade, was quoted as saying that “the bull run is not over yet and is likely to make its journey to the positive side. ” Meanwhile, MicroStrategy CEO Michael Saylor tweeted that the day’s events confirm that BTC “is unlikely to increase at a rate of 1500% per year for more than a month at a time.”
In addition, some pointed out that bitcoin has seen major corrections before, in times of massive gains.
Fun fact: #bitcoin had 6 pullbacks bigger than our recent -28% in the record setting 1000% + growth year of 2017.
– Nathaniel Whittemore (@nlw) January 12, 2021
Funny fact: #bitcoin had 6 setbacks greater than our recent -28% in the record of 1000% + year of growth of 2017. Graph and data of the man himself @Travis_Kling
In addition, by on-chain analysis company Glassnode, as the on-chain fundamentals remained strong despite the drop in value, pointing to a healthy network, this drop ”caused a clear jump from the bear / bull limit in the dormancy flowchart of Bitcoin. ”
“Active addresses for BTC and ETH are also almost all peak times,” noted researchers at Coin Metrics, adding that this increase signals that on-chain activity is increasing.
In addition, they emphasized that the number of addresses with at least 1,000 BTC has increased significantly since the beginning of 2021, which is “potentially further proof that the institutions are here to stay”.
Finally, as always, there are rumors of a possible ‘whale’ influence, in addition to conversations about conspiracies and manipulations – as well as comments that criticize the inevitable resurgence of these discussions.
At pixel time (14:21 UTC), BTC trades at $ 34,029 and is up 6% in one day and 8% in one week. The price rose 82% in one month and 336% in one year.