Bitcoin has been facing a trend of downward corrections from the past few days as the price kept declining over the week. The BTC bulls could not act as the price failed to break through the major resistance levels.
Crypto investors and traders were recovering from the recent downward trends when, suddenly, a huge slump in the price decided to rock the market. This sudden slump came like an earthquake as it fell by 21% and crashed up to $8,090.60, which became the most significant intraday drop since January 2018.
Crypto community and enthusiasts are linking this price drop to various reasons that could’ve been responsible for this big slump in the market, Bitcoin futures trading launch by Bakkt is being considered as one of the reasons for this slump.
When the news of Bakkt launch was announced, the crypto community was excited for the first of its kind platform, and they even suggested that the price will skyrocket to new ATH for the year. However, as we pointed out, things were different when the launch took place on 23rd September. On its first day, only 72 Bitcoin was traded on the platform, which was extremely low as to what people had expected.
Is Bakkt the only reason for the drop?
Low Trading Volume:
Another reason behind this drop can be the lack of risk-taking in the market. The low trading volume explains that the traders were cautious with trading Bitcoin, and this low trading volume leads to maybe the reason for a price drop. This low trade proved to be an excellent opportunity for bears to pull the price down, and they took great advantage of it.
Hash Rate Drop:
Another reason which cannot be ignored is the massive drop of 40% in the hash rate of Bitcoin. This sudden drop is still unexplained as to why the hash rate dropped, and this can be a reason for the price drop as well.
The weakening of investors and the downfall in the equity markets was also reported to be putting some pressure on Bitcoin.
While Bitcoin fell face first in the charts, other major cryptocurrencies were also pushed down the cliff as their prices dropped beyond their support levels. Ethereum declined 18.6% and reached the $170 levels while XRP fell by 11.5%, reaching $0.2402 trading levels. Litecoin went down by 21.2% to $56.72, making it the most significant one-day loss percentage for Litecoin since 2017.
Just two days after the launch of much-awaited bitcoin futures trading by Bakkt and bitcoin has crashed massively. As such, some analysts are predicting that the futures trading might lead to bitcoin crashing to a yearly low below $3000 soon. What do you think about such predictions? Tell us in the comments section below.