Bitcoin has experienced some form of stability since Thursday after the currency experienced a sharp drop in its value. The currency continues to hover over the $6,000 mark, but it is not showing many signs of the currency rising significantly. The drop in the value might have come from a possible whale who has invested in a large amount of money in the Bitcoin.
This past Wednesday night, Bitcoin saw a sudden drop from $6,600 to $6,300. The drop occurred in a little under an hour. The value had not experienced any other drops or sudden changes following that initial event where the currency was sold off with a significant drop involved.
Over the past few days, Bitcoin has seen hardly any change in its value. The currency has hung around the $6,300 value for the most part. The highest value for the currency came on Sunday morning when it went up to $6,350, although the currency went back to the original line from earlier in the day not long after that.Advertisement
The volume for trading has also declined since the initial drop. The volume reached up to $5 billion on Thursday afternoon. The total dropped in the middle part of Sunday to a little under $3 billion and continues to decline in value to this point.
What Caused the Issue?
It is unclear as to what could have caused the value of Bitcoin to decline so quickly. However, there have been concerns over how the rise of Bitcoin whales could have caused significant issues. These whales are investors that hold large amounts of the coins. By having one person sell off the currency, it becomes easier for the currency in general to drop in value. The sharp decline in the currency’s value this past week is a sign that there could have been a single whale who had sold off one’s portion of the currency, although it is difficult to figure out what could have taken place in general.
What About Other Currencies?
Most of the other major currencies on the market responded to Bitcoin’s changes in the same way. The currencies near Bitcoin like EOS and Ethereum saw a strong drop in value on Wednesday night, but those currencies have also seen stable changes in their values with no sizeable drops or increases.
Ethereum dropped below the $200 value during this sell-off. The currency did have a few other cases where the value dropped off by a substantial value, but the currency has since recovered and is being traded as normal once again. Bitcoin Cash also experienced a sizeable setback as the currency continues to try to get to the $500 mark. The currency did not experience significant drops, although its value has not necessarily risen all that much following the sudden drop in the value.
Tether continued to produce varying results, although the currency is based off of fiat investments and therefore entails different changes. Also, DigiByte saw a sudden rise in its value, although this may have also been due to another whale possible selling one’s wares.