- Bitcoin and Ethereum lead the crypto market sell-off with around 9% and 10% drops in value respectively.
- Despite lingering volatility, market sentiment is still bullish.
- Market participants see the dip as a great buying opportunity for Bitcoin.
The cryptocurrency market has experienced another major sell-off today. Leading the plunge are the two biggest cryptocurrencies by market valuation, Bitcoin and Ethereum.
Bitcoin is down about 9.1% in the last 24 hours, trading at around $59,900 at press time. The downwards correction has seen the benchmark cryptocurrency reach a two-week low of $59,268.
Ethereum, the second-largest cryptocurrency, also dipped to a 2-week low of about $4,168 today after plunging around 10%. It is currently trading at about $4,200 at press time. The rest of the market is also in turmoil as on the day with other of the top ten cryptocurrencies dropping between 7-15% as well. The cryptocurrency market capitalization has decreased by about 8%, wiping off over $250 billion from the market.
Crypto‘s High Volatility
The last notable market sell-off occurred around 3 weeks ago when the market tanked with Bitcoin also leading the pullback. Bitcoin’s value dropped by about $5,000, from trading at around $64,000 to reach $59,000 in a few hours. Across the market, around $200 billion was also wiped off compared to the market valuation of seven days prior to the correction.
The current price action is one piece of confirmation that the cryptocurrency market is still prone to volatility, even if the price swings are not as wild as they use to be in the past.
The coming months still hold some threat of price volatility of the crypto market lingering. This is because of the recent news from China that revealed the country is still intensifying its cryptocurrency market crackdown. China’s state planner, the National Development and Reform Commission (NDRC), stated that it would go after mining operations still being carried out in the country. China’s moves against the crypto-industry have historically been bearish for the market.
Market sentiment is still bullish for Bitcoin
However, the current market sentiment remains very bullish. For market observers, including “Crypto_birb”, a crypto technical analyst and investor, the dip is a much better buying opportunity for him, than it is for selling.
Going by the stock-to-flow model, the price of Bitcoin is expected to reach a price of $98,000 as the closing price for November. The creator of the valuation model, PlanB, has reiterated that the model is still in play and he is confident that Bitcoin will tag $135,000 by December as well.