On Thursday, a swathe of crypto assets had beaten a hasty retreat as the original cryptocurrency Bitcoin plunged to a 1-1/2 week low, hitting the brake pedals of its red-hot rally and prompting a steep sell-off wave among small-cap digital assets, retreating from a spitting distance of an all-time high of $19,666 hit during the December of 2017.
In point of fact, the blistering sell-off wave on Thursday came forth a day after Bitcoin had breached its three-year peak of $19,521, while its latest entrance into a sharp correction course was largely coincided with a technical glitch at crypto exchange Coinbase which was quoted saying earlier in the day it had been witnessing a number of connection problems leading to trading difficulties.
Bitcoin pummels as rally hits stumbling block
Aside from that, Bitcoin, the world’s largest crypto by market asset which had surged as much as 140 per cent this year over growing optimism on riskier assets alongside a weaker American Dollar, fell as much as 13 per cent on Thursday, while the second-largest cryptocurrency, Ethereum, which had been subject to a slew of legal debates over issuance of new cryptos or ICOs (Initial Crypto Offering) last year, slumped just a notch shy of 13 per cent and Ripple, the third-largest digital coin, lost a fifth of its market value after hitting multi-year highs earlier this week.
Citing statistics, during preparation of this report, at late-afternoon US trading hours, Bitcoin was trading 9 per cent lower to $17,160.7, a sharp correction from its three-year trough hit yesterday and Ethereum was down by 10.36 per cent to $517.7, while Ripple and Litecoin had taken a tattering header of 16.64 per cent and 16.98 per cent to $0.52 and $69.2 respectively.
Meanwhile, as a number of industry analysts had held Coinbase technical glitch responsible for Thursday’s deadly sell-off wave given the extent of leveraged “buying positions” held in to the platform, an official of crypto brokerage firm, Enigma Securities, Joseph Edwards said, “There’s definitely been a sense of euphoria in markets over the last couple of days.
This mostly feels like a reaction to that - over-leveraged markets took one small hit and suffered immensely”. Nevertheless, Bitcoin’s 12-year history had been full of enigmatic rises and equally sharp downturns.