Temporal: Enterprise Solution for Distributed Data

Bitcoin breaks below $8,000 as free fall continues

Bitcoin breaks below $8,000 as free fall continues

Bitcoin continues ripping through major support, breaching the $8,000-level support within the last hour.

From open at $10,027 on Sep. 23, BTC has now fallen over 20 percent. The drop follows a breakout of a month of consolidation around the $10,000 price point, beginning mid-August.

What has startled investors is the speed of the drop. Mirroring the expediency of Bitcoin’s gravity-defying price gains, in less than 72-hours three months of gains were erased.

Bitcoin US dollar price chart
BTC/USD by TradingView

The drop isn’t a market anomaly, either. The movement is supported by $18.3 billion in reported trading volume from CoinMarketCap, up 7.6 percent. The figure follows two impressive days posting $25.0 billion and $21.7 billion in trading volume on Sept. 24 and 25, respectively.

As a result of the recent market movement, Bitcoin volatility spiked considerably after trending downward since late July, increasing 48 percent from 2.1 to 3.1 percentage points. 

Bitcoin volatility index chart
Bitcoin Volatility Index

Despite the sudden price drop, BTC dominance actually increased over a full percentage point from 67.2 to 68.3 percent. This indicates that Bitcoin isn’t alone in its loss of value, with altcoins bearing even greater losses, on average.

In terms of overall cryptocurrency market capitalization, an impressive $40 billion flowed out of the markets—a 15.7 percent drop. This does not factor-in the flight of investment to stablecoins like Tether and USD Coin. Tether recently rose to the 4th position with a market capitalization of $4.1 billion, emphasizing the gravity of the situation.

It seems hodlers are in for a ride.

Bitcoin | BTC

Updated: Sep 26 at 4:59 pm PDT
$7,958.69
-5.16%

Bitcoin, currently ranked #1 by market cap, is down 5.16% over the past 24 hours. BTC has a market cap of $142.93B with a 24 hour volume of $18.85B.

Chart by CryptoCompare

Bitcoin is down 5.16% over the past 24 hours.

Posted In: Analysis, Bitcoin, Price Watch, Trading

The above advertisement is an affiliate link. CryptoSlate will earn a small commission if you sign up.

Like what you see? Get more Bitcoin market news in your inbox

Subscribe to CryptoSlate, our daily newsletter containing the top stories and analysis.

Sign up to stay informed
Mitchell Moos
Author

Mitchell Moos

Editorial Manager @ CryptoSlate

Mitchell is a software enthusiast and entrepreneur. His first startup built algorithms for optimizing cryptocurrency mining. Prior to CryptoSlate, Mitchell was a project manager at a firm that built distributed software on Hyperledger. In his spare time he loves playing chess and hiking.

View author profile

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.