Thursday, May 20, 2021

Bitcoin (BTC) Dips Under $30K, Starts Recovery

Bitcoin (BTC) did not start dipping below key levels on Wednesday, touching $26K prices on the daily candle. The price moves took the market by surprise, as BTC spent the past weeks with relative stability.

The recent crash happened on highly active trading, exceeding all previous records to reach $130B in the past 24 hours. Even by the volatility standards of crypto space, such trading and price action are rare and unprecedented.

Crypto markets function in an entirely unregulated fashion, and trading continued despite the wild price swings. One of the biggest hurdles was the fact that exchanges and brokerages stopped working and some disabled deposits. The price crash was a stress test for the entire crypto ecosystem, showing that dwindling liquidity and technical issues could block trading. 

The recent events sent the Bitcoin fear and greed index into “extreme fear” territory. BTC has not traded with this sentiment since the crash of March 2020, when prices were 90% lower compared to the current level. Read Full Story


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