Just as in 2016, we can see the same Bitcoin halving nightmare since the price crashed by more than 20% in the past few hours reaching $8000 levels on some exchanges. Just two days before the Bitcoin halving event, the price of the asset crashed and we are reading more about in the bitcoin news today.
As of the time of writing, the price of Bitcoin corrected slightly and is now trading around $8500 which is a 12 per cent drop over the past day. The current daily low on Bitstamp for the number one asset was $8117 while on Binance it reached an even lower position of $7940. The high volatility affected the altcoins as Ethereum dropped by 12 per cent below the $200 levels with a current price of $186. The total market cap decreased to $235 billion in just a few hours.
The volatility of Bitcoin was accompanied by multiple liquidations on the major exchange BitMex. The data by SKEW shows that more than $200 million worth of long positions got liquidated in just a half an hour which sent the price of BTC down by 15%. Only two days ago, Bitcoin reached $10,000 and carried an opposing liquidation of about $24 million worth of BitMEX short positons in less than four hours.
Bitcoin’s recent price volatility caused a huge outage on the major US crypto exchanges including Coinbase. The hashtag with the name of the exchange was trending on Twitter and the users shot out screenshots of their 502 error messages on their apps. The outages seem to have started at 5:26 PST and lasted for about an hour. Coinbase faced the same outage last week when Bitcoin reached $8900 while other exchanges such as Kraken and Binance remained operational.
It still remains to be seen whether the Bitcoin halving nightmare will trigger another sell-off. Some analysts such as Willy Woo wonder whether after this event the price trend will be influenced by the miners less and will that lead to becoming the biggest sellers of Bitcoin. Woo also expects the exchanges to dump the price post halving. The daily low of $8000 is where the significant 200-day moving average line lies as per the reports in our Bitcoin news.
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