TL;DR
• A recent hours’ market crash caused crypto markets to rapidly losing their value, Bitcoin’s current price low is $6250 Bitfinex rate.
• Bitcoin (BTC) dropped from what was considered its new “bottom” to below the $6,300 mark, while numerous altcoins experienced even more significant drops, with many of them losing more than 15% of their USD value.
• Experts believe that the new crash started with the bonds market, expanded to include stocks, and eventually pulled down cryptocurrencies as well.
As of today, October 11th, the crypto market has experienced a massive crash, with both Bitcoin and altcoins once again suffering significant losses. While 2018 has been mostly bearish and marked by numerous crashes and price drops, many had hoped that such declines were part of the past.
However, it would seem that this year’s bearish trend is not about to leave the market just yet. As a consequence, the cryptocurrency market lost around $13 billion in a little more than 60 minutes. Bitcoin price started going down once more, dropping below the $6,300 mark for the first time in weeks, after experiencing rapid 6% loss. While this is terrible news for BTC, the top altcoins — such as Ethereum (ETH), Ripple (XRP), and Bitcoin Cash (BCH) — lost between 10% – 15% of their value, and are continuing to drop at the time of writing. The smaller altcoins ended up with even higher losses.
According to experts, a market crash usually carries a reason. Many are aware that the crypto market has entered an unusually calm period, with volatility being only minimal. While some saw this as a sign of market stability, others predicted a storm. Even with the crash, however, many analysts believe that this is a small drop that arrived before an even more significant price surge.
At first, it seemed like the crypto market was stable and comfortable, with possible hints of a breakout, back to the $7000 levels. Traditional markets were mostly stable as well, but they did show some signs of weakness. The real warning came from the bonds market. Yields on multiple bonds have skyrocketed to prices that have not been seen since 2011.
The yields have been rising steadily over the past decade, and when the interest goes up, bond rates usually follow. Now, the current spike in this area means that investors have started a massive sale. The stock market saw this and has taken it as an example, causing an oversell. Only hours after that, the crypto market started losing value as well.
In the end, this is terrible news for all investors, whether they are prone to investing in the crypto market or traditional markets. Bitcoin supporters were left especially disappointed, as they expected the number one digital currency to start a new bull run. Instead, BTC dropped below $6,300 and is currently valued at $6,280 (Bitfinex).
Of course, optimists still believe that this situation might turn and that BTC will start rising once again. While it seems unlikely at this point, it should be noted that several analysts have predicted a massive drop, followed by a bull run only a few days ago. The slide has arrived, but the Bull Run has yet to show its face, if ever.
