This week will be remembered by crypto-currency traders for a long time. Bitcoin lost nearly a third of its value, dropping sharply from $ 20,000 to $ 13,000 on Friday in just 5 days, the main competitor BCH sank almost 30% on Friday, reaching $ 3,700 this week.
The main reason for the flight from an unstable market, which resembles a pyramid, is profit-taking move, reinforced by speculative bearish pressure. In addition to being criticized by regulators what scared away by some investors, the catalyst for the decline was the bankruptcy of YoBit exchange after a hacker attack. Also, the suspension of trading on the Coinbase exchange was also a trigger for a rout after suspicion of trading with insider information.
The regulator of the Danish Central Bank called investing in cryptocurrency a “deadly gambling”. The head of the RBA, as well as the former chairman of the Federal Reserve, Alan Greenspan, was extremely negative about the bitcoin.
Investors withdrew $ 170 billion from the cryptocurrency market in just one day, and by the end of New Year, the fall is likely to continue in the wake of panic and anxiety. Bitcoin is expected to find support at $ 9,500- $ 10,500, but active purchases are likely to begin after the holidays.