Although the crypto market has not fully recovered from Monday’s bitcoin flash crash, the prices of some cryptocurrencies seem to be stabilising.
While bitcoin’s value has not recovered to its pre-Monday levels yet, it’s nosedive has slowed down.
It’s price is down by about 1 per cent in the last 24 hours compared to its value drop by 7 per cent in the previous day, and is trading at close to $42,000.
Ethereum (ether), Solana (SOL), and dogecoin have lowered in values by over 3 per cent in the last day, compared to a nearly 7 per cent 24 hours earlier.
While it is hard to pinpoint what caused the crash, some experts tie it to China’s property market.
Some analysts warn that the latest price dip could form part of a longer-term trend while others remain convinced that any short-term volatility will ultimately be forgotten as bitcoin rises to new all-time highs in 2021.
You can follow all the latest news, updates and expert price predictions in our live blog right here.
After falling below $40,000 for the first time in six weeks in the early hours of Wednesday, bitcoin’s value has risen and stabilised around $42,000 in the last few hours.
The cryptocurrency still hasn’t recovered to its value of $47,000 prior to the flash crash on Monday, which took out nearly $200 million from the crypto market.
The overall crypto market is down by about 2 per cent since its values yesterday. Most cryptocurrencies, including Ethereum (ETH), Cardano (ADA), and Solana (SOL), are still down at varying levels between 1 to 5 per cent compared to their prices 24 hours earlier.
The chart is still all red with marginal signs of recovery to pre-Monday levels.
Vishwam Sankaran22 September 2021 07:07
Amid fears that China’s real estate giant Evergrande Group may default on its debt payments and affect the global financial system, including the crypto market, the main unit of the property developer has said it would make a coupon payment on its domestic bonds on 23 September.
Several experts tied the latest bitcoin flash crash, which wiped out nearly $200 million from the crypto market, to fears surrounding the Evergrande Group’s debt payment situation.
But the latest news may offer some relief to jittery markets, according to a report by Reuters.
Vishwam Sankaran22 September 2021 05:48
Ethereum price finally falls below $3,000
The price of Ethereum (ether) has finally fallen below the $3,000 mark after holding on for nearly a day above the milestone figure.
Cardano (ada) is now also threatening to dip below the $2 mark, while dogecoin is hovering dangerously close to the $0.20 mark.
Bitcoin remains above $40,000, though only by a couple of thousand dollars. The latest losses suggest this week’s crash is not quite over, and by the time this downturn does end there may be a lot of key price markers to reconquer.
Anthony Cuthbertson21 September 2021 18:25
Bitcoin price right now is irrelevant – MicroStrategy CEO
One of bitcoin’s most prominent backers has described the latest price fluctuations as unimportant when taking into consideration the cryptocurrency’s future prospects.
MicroStrategy CEO Michael Saylor, who has led the software company to become the world’s biggest corporate investor in bitcoin, tweeted that this week’s price or last week’s price won’t matter “in the long run”, as they will both be just a tiny fraction of its ultimate value.
Last week the firm bought a further quarter of a billion dollars worth of bitcoin to take its total holdings above $5 billion.
Anthony Cuthbertson21 September 2021 15:13
Is bitcoin price still on track for $100k in 2021?
Zooming out on the longer-term market may put bitcoin’s current price difficulties in perspective, but it offers little help in predicting its future trajectory.
Analysts remain divided over whether this is the end of a so-called “dead cat bounce” within a bear market, or if it is just a blip on the way to new all-time highs in 2021.
Subscribing to the latter theory is Brad Yasar, CEO of decentralised finance (DeFi) firm EQIFI, who shared his thoughts with us. He believes bitcoin “isn’t going anywhere near” $25,000 and could still hit $100,000 this year. Here’s what he had to say in full:
Anthony Cuthbertson21 September 2021 12:04
‘When in doubt, zoom out’
A common mantra among bitcoin enthusiasts is ‘when in doubt, zoom out’.
The idea is that any short term price movements seem relatively insignificant when taking a broader view of the cryptocurrency market.
The current price of just above $43,000 is still more than twice that of any previous high seen before 2021. The question many analysts are asking this morning is whether this current cycle will mirror that of those seen in 2013 and 2017 – and if so, is it on the way up or down?
Anthony Cuthbertson21 September 2021 10:50
Bitcoin price prediction model still on track
One of the more remarkable things about the latest bitcoin price crash is that it fits in with an extremely positive price prediction model.
Pseudonymous analyst PlanB has amassed more than 800,000 followers on Twitter, largely thanks to the prescience of his Stock-to-Flow (S2F) model that he first applied to the cryptocurrency back in 2019 when the price was below $4,000.
The forecast, which takes into account bitcoin’s inbuilt scarcity, put it on a path way beyond $100,000 in this current market cycle, however with each price crash come fresh doubts.
After the price fell dramatically in the months following April’s all-time high above $64,000, PlanB made a rough estimate of the path bitcoin could take to reach above $100,000 before the end of 2021.
The June prediction put bitcoin at $47,000 in August (it closed last month less than a couple of hundred dollars off that price) and at $43,000 in September (roughly today’s price), before surging to $63,000 in October, $98,000 in November and $135,000 in December.
Anthony Cuthbertson21 September 2021 09:06
While it is hard to pinpoint what exactly caused the latest bitcoin flash crash, some experts say it could be tied to China’s property market.
Experts say concerns surrounding speculation that the Evergrande Group – China’s second-largest property developer – will default on its $300 billion in debts could be driving the current crypto market crash.
To allay fears over the property developer defaulting on its pay, Chinese authorities have injected about $14 billion into its banking system.
However, the cryptomarket continues to nosedive, valued currently at $1.87 trillion – dropping in value by over 7 per cent in the last 24 hours.
Bitcoin, which was valued at close to $47,000 on Monday morning, is currently priced at $42,000, with no signs of recovery yet.
Other cryptocurrencies, including Ethereum (eth), Solana (sol), and Dogecoin (doge), are also down by more than 5 per cent over the last 24 hours. The chart still looks all red with no signs of recovery yet.
Vishwam Sankaran21 September 2021 06:44
Bitcoin is ‘cyberspace bank’ serving the unbanked
One reason for El Salvador’s president, Nayib Bukele, to “buy the dip” today is because he sees the long-term potential of the cryptocurrency in countries such as his.
Just two weeks after El Salvador officially introduced the Bitcoin Law, which officially made the cryptocurrency legal tender, more than 1.1 million people are already using it as a day-to-day currency. That’s roughly one sixth of the country’s population that didn’t previously have access to traditional financial services.
“It seems that we will be able to bank more people in one month, than they did with nationalisations and privatisations of traditional banks in 40 years,” President Bukele said.
It prompted another staunch believer in bitcoin, MicroStrategy CEO Michael Saylor, to praise bitcoin and the stance El Salvador has taken. As the largest corporate investor in bitcoin, with billions on its balance sheet, it wouldn’t be surprising to learn that Saylor is also buying the dip.
Anthony Cuthbertson20 September 2021 20:06
Bitcoin in ‘greatest buy zone in history’
Many long-term bitcoin holders are using today’s price crash to push the “buy the dip” narrative in the hope that it will bounce back stronger.
Bitcoin podcaster Cedric Youngelman even goes as far as describing it as “the greatest buy zone in history”.
Other traders are offering a more cautious view on the market, with bitcoin author Glen Goodman describing it as “choppy hell” that is too risky to call either way.
“This is why most of my money remains on the sidelines, waiting for better opportunities,” he says.
Anthony Cuthbertson20 September 2021 17:34