The crypto industry has fallen prey to Chinese FUD yet again. Meanwhile, enthusiasts have lost count of the number of bans imposed on cryptos. Consequently, the derivatives of FUD have reportedly wiped out $600 million worth of Bitcoin. Liquidations have increased the selling pressure, creating an imbalance between demand and supply. Hence, causing extreme volatility.
However, expectations of the plunge in prices are correlated with herd investors and traders. Who panic sell their holdings, fearing terrible losses. It is worth noting, that the industry has seen similar events in past. And the crypto industry has risen from the odds every single time. People falling trap to FUDs is more worrying than the fall actually is. The tabular representation below gives a clear understanding of historic events.
This time around, the situation is no different. As BTC prices hit their 24-hour low of $40,936.56, from its 24-hour high of $45,080.49. The coin, however, is trading at $41,422.06. The statistics are from press time. Meanwhile, other top-tier altcoins are also following BTC’s trend. The pictorial representation below is a collective effort in portraying the number of bans crypto has seen.
Popular analyst mentions that the Chinese regulatory had announced it on September 3rd. And asks traders and investors not to fall for it. In addition, netizens opine with stale news getting traction and are also looking for connections with BTC prices and the CME gap.
Bitcoin Is a Seasoned Sailor, It Will Sail the High Tide!
On a sarcastic note, while amateurs are liquidating, whales are buying the dip. The surge in Coinbase premium does justify buying the dip. Professional investors and traders are not concerned much. As they firmly believe that if China is banning something, it is highly valued by its citizens. The activity of whales is evident from the statistics below.
Popular analyst, recalls the events from the ban of 2017 and how the bull rally followed. He also expects a huge FOMO rally that will propel BTC prices to chug above $150k. He also hints at the possibility of the coin reaching $333k.
Summing up, the facts and figures collectively give a bigger picture of the events. We can expect historic events to repeat, rallying the crypto in bullish momentum. A lot of speculations are revolving amidst the buzz, connecting the Evergrande fall as well. On contrary, it is advisable for traders to stay away from FUD.