Bitcoin (BTC) suffered a major blow last night. In a very short time, the largest cryptocurrency based on market capitalization lost $700 in value. Analysts suggest that this may be due to some whales moving large amounts of bitcoins just before the drop while others think the current correction is healthy.
At the time of this writing, the price of bitcoin (BTC) is $7,897.50 on CoinMarketCap, which saw a 6.88% decline in the last 24 hours. With the total market capitalization of cryptocurrencies as $250.3 billion and bitcoins market capitalization of $ 139.9 billion, the bitcoin dominance is currently 55.9%. It remains unclear whether this is a correction for the short term, or whether this is the precursor to further declines. The well-known crypto-analyst, Josh Rager, expects a possible short recovery before bitcoin drops further. He took to his twitter account to announce this:
People have asked if that was short term sell off and the price is heading back up. Due to the amount of volume, it's more likely price has short term relief that can last hours or days before another push down to retest support. Price action isn't a straight line :)
Moreover, a correction would be "healthy" for bitcoin. In the past four years, bitcoin has often seen major corrections after a period of strong increases. Often the rate corrected by 30%, which in this situation would mean that bitcoin dropped back to $ 6,400. However, according to analysts, this is unlikely given the momentum that bitcoin saw in recent weeks. At the moment, analysts expect the rate to be somewhere near $ 7,000.
Bitcoin not only saw a big dip last night but the rest of the cryptomarket also suffered the same fate. The largest droppers in the top 10 cryptocurrencies are currently EOS (-11%), bitcoin cash (BCH) with a fall of 9.8% and litecoin (LTC) with a fall of 9.79%.