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: Nov 7 at 2:51 am UTC

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, Price Watch, Trading
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Mitchell Moos

Mitchell Moos

Contributing Analyst @ 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.

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