The digital currency market is experiencing another massive selloff. Some of the top digital currencies in the market such as Bitcoin (BTC), XRP (XRP), and Litecoin (LTC) are selling off again. This is the fifth time the market is experiencing such a massive sell-off this year. However, this time around, the selloff is different from the previous ones seen this year.
The Recent Sell-Off Has a Unique Trend
One of the major differences is that the selloff started after the market showed a great level of stability for two months. Previously, selloffs usually start after short spikes. Bitcoin (BTC) – the world’s most dominant digital currency – has maintained a stable price for a period of two months.
The digital currency has been trading close to the $6,500 mark since early September. However, as a result of the selloff, the digital currency is now trading close to the $5,500 mark. This is a decrease of about $1,000 in just a couple of days.
Another notable thing about the recent selloff is that it broke below the $6k and $5,800 levels. These levels are seen as the market bottom for Bitcoin (BTC). This indicates a great bearish sign. $5,800 is a very crucial level for Bitcoin as the digital currency has been able to prevent declines towards that level for a very long time.
According to Clement Thibault, the value of Bitcoin (BTC) has not tested this level since it started trading between the $6k and $7k marks. Clement Thibault is a Senior Analyst at Investing.com – a global financial platform. He believes that the digital currency will recover very soon over the $6k mark.
Bitcoin (BTC) Sees Massive Spike in Trading Volume
There is a massive spike in the trading volume of Bitcoin (BTC). The recent selloff has resulted in an increase in trading volume. Over the past twenty-four hours, the trading volume of Bitcoin (BTC) is more than $6.6 billion. Abraham Merkin – a digital currency trader – has shown concern regarding the increase in trading volume that accompanies the selloff.
The trading volume of Bitcoin (BTC) has increased by over 80 percent in some trading platforms. Some mainstream trading platforms have seen an increase of about 20 to 25 percent. However, the chairman and deputy CEO of Fincross International – Henry James, said he’s not surprised by the selloff.
He said a breakout has been expected due to the fact that the digital currency has been trading in a tight range for a long time. Hence, the sudden decline in the value of Bitcoin (BTC) wasn’t surprising to him. He also added that the recent selloff indicates that buyers are still looking for more real-life use-cases for digital currencies.
Bitcoin (BTC) is not the only digital currency experiencing this massive selloff. Other top digital currencies in the market are also experiencing the same trend. While Bitcoin (BTC) has lost more than 12 percent of its value over the past 7 days, XRP (XRP) has lost about 16 percent of its value in that same period. Litecoin (LTC) is also down by about 19 percent over the past 7 days.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin (BTC) is currently changing hands at $5,575 after a decrease of about 1.5 percent over the past 24 hours. The digital currency currently boasts of a market cap of $96.90 billion and a trading volume of $6.64 billion over the past twenty-four hours.