on the crypto
Bitcoin's price dipped more than $ 800 in less than five minutes on Tuesday, June 2, bringing the biggest cryptocurrency on the market in red.
Bitcoin does not resist above the $ 10.000 threshold
The sell-off started at 14:45 UTC (10:45 am ET) yesterday, when the cryptocurrency was trading at highs above $ 10.137 and at 14:49 UTC, the price dropped to $ 9.298. As of press time, bitcoin is quoted around $ 9.500, representing a 6,5% drop later in the day.
On BitMEX, the Bitcoin price has dropped to $ 8.600. The sudden drop in prices may have trapped many traders on the wrong side of the market. Definitely an unexpected event, given how strong the market looked after bitcoin's price exceeded $ 10.000 on Monday, and some analysts were convinced that bitcoin would continue to rise above $ 11.000.
But buyers, once again, failed to keep prices above the $ 10.000 threshold. The cryptocurrency has struggled several times over the past 12 months or so to establish a solid base above $ 10.000.
Investors continue to trust the cryptocurrency
The retreat is unlikely to discourage investors, who believe in the long-term value of bitcoins as a safe haven and hedge against inflation. In addition, the sentiment of "HODLing" remained strong despite the unprecedented price volatility seen in the past five months.
Nearly 60% of the bitcoin offering hasn't changed hands in over a year, a likely sign that investors are expecting earnings, according to Glassnode.
The effects on altcoins
The latest sell-off, however, is weighing on alternative cryptocurrencies. As of press time, litecoin has fallen by 5%, while Ethereum's Ether token records a daily loss of 6%. Other major cryptocurrencies such as bitcoin cash, bitcoin SV and XRP are also in red.
The situation of traditional markets
In the meantime, traditional markets are seeing mixed dynamics. While the industrial average of Dow Jones has grown by 0,4%, the highly technological Nasdaq index is losing 0,5% of its value. Major European equity indices such as the German DAX and the FTSE in the United Kingdom increased by 3% and 1% respectively.
European equities appear to have picked up a strong offer in response to news that Germany may launch a new stimulus package worth € 100 billion ($ 112 billion) to respond to the coronavirus crisis. And the European Union has already proposed a € 750 billion European incentive plan.
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