- Bitcoin has lost over 20% of its value since Monday, September 23.
- Bakkt launch and crypto whales are among the usual suspects.
Bitcoin (BTC) is changing hands at $8,000, nearly $2,000 cheaper than at the beginning of the week. The first digital asset has lost over 20% of its value in just five days and dragged the whole cryptocurrency market lower. At the time of writing, the total capitalization of all digital assets in circulation is registered at $213 billion, drastically lower from $260 billion on Monday, September 23.
While the true drivers behind the sell-off are hard to identify, the crypto community has been actively discussing various theories, starting from “buy the rumor, sell the fact” to price manipulations ahead of futures settlement.
However, the two main theories revolve around Bakkt that saw a disappointingly slow start. The ICE-backed trading platform that offers first-ever Bitcoin futures with physical delivery was launched on Monday, but it failed to attract many investors so far. The trading volumes on the platform remain low as compared to CME’s bitcoin futures.
Another idea is wrapped around insider trading and price manipulations by whales that may create a selling situation to buy on dip later. This theory is supported by Whale Alerts data that reflects large USDT and XRP transactions.
Despite strong sell-off, hardcore cryptocurrency enthusiasts believe that the coin will recover soon and retest new all-time highs. It remains to be seen, whether their forecasts are realistic. Anywhay, Bitcoin is still 120% since the beginning of the year.