Bitcoin falls below the USD 15000 mark
Joe Bidens will be the 46th President of the United States and his supporters are celebrating on the streets! For days, the counting of votes in Pennsylvania and Georgia dragged on and the election turned into a real nerve-wracking thriller. Meanwhile, traditional markets were pumping up and Bitcoin climbed to a new annual high. However, after the announcement of the election victory we could observe a typical “sell the news” behavior of investors. In a rush, the No.1 crypto currency plummeted by over USD 800. We take a look at the current market situation.
Bitcoin exchange rate current
At the time of writing, the first mover is quoted at 14834 USD, which represents a 3.99% fall in the exchange rate. This means that the trend line at USD 15000 is again mutating into an important resistance. On the downside, the support lines at 14800 USD and 14600 USD initially form a new base. In the meantime, the BTC price dumped to a low of around 14500 USD on some stock exchanges. The abrupt slump again highlights the danger of high volatility.
Volatility as a double-edged sword
Enormous price fluctuations are again the order of the day in crypto space. While risk-affine traders are happy about the wild price eruptions, uncertainty dominates for many investors. The stability that we have seen through the high correlation to traditional markets is now a thing of the past. Instead, FOMO, FUD, hype and “sell the news” dumps could replace chart technical indicators for an unlimited period of time. Will the Kryptoversum again become an unregulated playground for whales and risk traders?
Market capitalization declines after Biden’s election success
After Joe Biden’s election victory, investors pulled over $30 billion out of the crypto market on Saturday. The total market capitalization currently breaks down as follows: 64.2% is in Bitcoin investments, 35.8% in Altcoins. However, the sudden setback is unlikely to upset experienced traders. The motto “buy the rumor, sell the news” is a well-known phenomenon that is currently fueled by high volatility.
What are the Altcoins doing?
Ethereum and Co. are following the first mover south as expected. For example, the Smart Contract-Coin has to record a dip of – 3.88 % on Sunday. Further down the line, Altcoins such as Chainlink (- 6.30 %), Litecoin (- 5.73 %) and Crypto.com Coin (- 6.41 %) are hit even harder. However, in the morning several indicators point to a speedy recovery. There is much to suggest that the bulls can rely on the support at USD 15000 and a trading volume of over USD 35 billion illustrates the interest of investors.