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Bitcoin Plunged Below $8,000 for First Time since June, Where Will It Go

On the early morning of September 25, the price of bitcoin plunged nearly $2,000 from its long-standing support around $10,000 in just over an hour, hitting an intraday low of around $7,700, its lowest level since mid-June.

Led by the plunge of bitcoin, mainstream cryptocurrencies also suffered a massive crash in the early morning. The prices of the top 20 cryptos by market cap collapsed by more than 15%. As of the press time, the overall market capitalization of all 2,000+ cryptocurrencies is roughly $227 billion, $30 billion has been wiped out over the past 24 hours.

The topic of “bitcoin crash” has been trending on Weibo (Twitter equivalent in China) this morning. As at the time of this writing, it has been ranked 11th on the Weibo hot search.

What happened?

On Monday, the long-anticipated Bakkt’s bitcoin futures went live, while trading of its bitcoin futures saw a disappointing start on the first and the bitcoin market didn’t seem to get a boost from the product which is designed to remake bitcoin as a mainstream investment.

With the rollout of the long-anticipated potential boon, the sudden crash has shocked investors. Some Chinese crypto investors said that big institutional investors were on the move, getting ready to enter the bitcoin market with lower prices; Some associated the plunge with the act that Huobi founder Leon Li Lin emptied all his Weibo posts, which sparked a lot of speculation on worries about the crypto market and regulatory policies. But Li came out later explaining that what he had done was simply for safety considerations since he had not used Weibo for years; Those who aimed to find out the reason behind bitcoin’s crash even related it to Google’s recent quantum computer breakthrough.

But is the fall just a beginning or the end of the sideways trading of bitcoin? Regarding this, Jiang Zhuo’er, CEO of crypto mining pool BTC.Top, said

“The last time we saw a bull run was in October, 2015. While this time, the bull came in April – six months earlier, far too away from the next halving (which is expected to take place in May 2020). As a result, a price crash was unavoidable, and this is also the last chance for investors to get on the bitcoin bandwagon.”

Jiang added that “it’s unlikely that BTC will drop further below the $7,000-$8,000 range where a lot of people, including me, have been trapped”.

Crypto analyst “Crypto Welson” also tweeted claiming bitcoin was accumulating buys in $7.5k-8.5k range. As of press time, bitcoin is trading at $8,708. Will bitcoin continue its drop to the $7k-$8k range as most ready-to-buy investors wish and even cheaper, or just a short-term movement after the long sideways? Leave your comment below.

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