Bitcoin is currently trading for over $8,800, but during yesterday’s early morning hours, the currency ultimately spiked beyond $9,000 for the first time in well over two months. Now that bitcoin has fallen somewhat, analysts are trying to figure out what may have happened.
Bitcoin Has Taken a Fall
The sentiment is that a massive selloff occurred once bitcoin reached this point. It’s an unfortunate fact to consider; the idea that bitcoin gains a bit of momentum and all anybody can think to do is sell? At this point, traders should know that selling their bitcoin the minute it grows like that is not going to have good results for the coin. It’s going to fall almost instantly, resulting in a temporary bear status.
This time appears to be no different. It hit $9,000, people sold their stashes, and then boom! It dropped again. Right now, bitcoin is trading for about $600 less, suggesting a heavy fall for the world’s number one cryptocurrency by market cap.
An anonymous trader talks about how most crypto enthusiasts sought to sell bitcoin the minute it hit the $9,000 mark. He explains:
Spoke to a couple of OTC desks and heard that there were record amounts of BTC being sold above 9K.
While it’s understandable that most people would want to take advantage of the higher price and put a little cash into their pockets – especially lately, when digital assets have had a scary run and many people have witnessed them lose loads of value within a matter of weeks – this can be considered something of a mistake in that it’s going to put a halt to the coin’s momentum. Right now, many hodlers and hardcore traders are probably wondering how far bitcoin could have gone if it was not the subject of a selloff.
The power and excitement behind bitcoin seem to have slowed down a bit. Stopping at just over $8,800, the currency has experienced a halt in its sudden price bursts and now it looks like enthusiasts will have to wait before BTC takes precedence again.
Coinbase Had It Hard
Many crypto exchanges report seeing heavy traders over 24-hour periods. Trading platforms like OKEx and Coinbase say millions of dollars in BTC were traded the minute bitcoin hit $9,000. In addition, for exchanges like Coinbase, this trading proved too hard to handle. The company experienced heavy technical difficulties and processing delays given the amount of people that were utilizing its services, which caused the trading enterprise to crash temporarily.
This is not the first time Coinbase has experienced such results. The first occurrence took place in 2017, when bitcoin was trading for its all-time high of about $20,000. Many people were having FOMO (fear of missing out) and jumping on as quickly as they could to get a piece of the BTC action.