Over the past 24 hours, the price of Bitcoin has dropped by $ 1500, from $ 9800 to $ 8350, leading to a major decline in the entire crypto market. This is the lowest level recorded in the last 3 months, and the reasons behind the evolution are not clear.
Some analysts believe that the drop was due to contractual liquidations on the Bitmex exchange. It offers the leverage option of up to 100X, and the DataMish data platform has shown that contract liquidation coincided with the BTC price drop.
Others believe that Bakkt’s extremely weak results at launch are responsible:
“The disappointing launch of Bakkt signaled to the crypto community that institutions are not prepared to invest in Bitcoin at the scale they were expecting, which means that the price was probably too high and that a correction was needed,”
said Alex Mashinsky, chief executive of crypto lending company Celsius Network.
“What we just saw are short-term sellers and speculators who gather to make things worse, and now we’re back in support,”
added Mashinsky. His opinion is also shared by Mati Greenspan, eToro analyst.
The hash rate of the Bitcoin network has been anomalous
Coin.dance data showed that the hash rate of the Bitcoin network dropped sharply on September 23, from over 98 EH / s to 57.7 EH / s. The 40% decrease remains unexplained and is even more surprising given that the hash rate has recorded record values throughout the summer.
Overall, the price of Bitcoin has dropped by over 11% in 24 hours, but the other cryptocurrencies have been affected much more.
Ethereum, Ripple XRP, Litecoin and Bitcoin Cash posted losses of 15-22%, and the total market valuation dropped from about $ 250 billion to $ 220 billion.