Cryptocurrencies are going down... What may signal a recovery?
Bitcoin dives, extending crypto descend
On Friday, the worlds’ number one crypto asset, Bitcoin started lower. The digital currency is braced for six daily losses in a row, having enjoyed six successive winning marathons three weeks ago.
Having hovered above support at $7,500 on Thursday, the most popular digital currency went down to a session minimum of $7,290.02 in early New York trade. The currency pair BTC/USD hit $7,330.55, sinking 3%.
However, the recent selloff could be provoked by a single Bitcoin enthusiast. On Friday, Hong-Kong exchange OKEx came up with a statement stating it had terminated a huge trading position of up to 4168515 contracts. The huge size of the order automatically activated the so-called societal loss risk management mechanism.
The very essence of the societal-loss-risk-management mechanism is that some users holding a profit are going to be subject to a clawback and also they will surrender some profits just to have their position covered.
The exchange tried to reach out to the anonymous trader, but failed and urgent measures were taken.
On Thursday, Bloomberg informed a dismal fact that Swiss banking giant UBS told that Bitcoin can’t be a proper nominee to become a payment system for the entire world. The bank explained that this digital currency is extremely unstable by nature and it prevents it to be employed as a trustworthy means of payment for transactions worldwide. Moreover, the bank’s analysts stressed that Bitcoin should reach at least $213,000 to replace the whole American money supply.
Bitcoin futures generally slumped. As a matter of fact, the Cboe Global Markets Inc. contractXBTQ8 headed south by 2.4% coming up with an outcome of $7,345. As for the CME Group Inc.’s August contract BTCQ8, it demonstrated a reading of $7,330, dipping by 2.8%.
The currency pair ETH/USD stood still being worth $410.00.
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Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.