Bitcoin took an early-week tumble as it continued to further erase the gains made a month ago today when Chinese president Xi Jinping offered his public backing of blockchain technology. Continuing a sell off that that began in earnest two weeks ago, Bitcoin fell to a six-month low of $6,525, marking a $2,625 drop since the last green day in early November. Barring one exception, alts fared no better, dropping by as much as 20%.
Miner Capitulation to Blame?
Signs that Bitcoin was in the midst of a continued selloff came last week when theories surrounding the capitulating of small mining networks began to surface, and a 23% drop in the last seven days adds weight to these theories. Some however took things to another level and wondered if there was something more sinister afoot:
Honestly ask yourselves:
“Who is selling and why?”
I think someone is illegally printing bitcoin. (Don’t know how but they are)
Maybe an exchange bug?
– Nobody is selling.
It’s a fake price that’s not real.
Sorry guys I’m not convinced: Somethings up
— ฿ITLORD 01 (@Crypto_Bitlord) November 24, 2019
Others however was pretty sure about where the dump came from:
CME Futures have opened at 5PM…This is 15 minutes candle.
But don’t worry, it has nothing to do with CME. All good!! Nothing to see here. pic.twitter.com/gDawvwJNfV
— Bitcoin, Gold, Silver & Geopolitics (@Super_Crypto) November 25, 2019
The fact that Bitcoin has reverted to the $6,000s and could well go lower before bottoming out reinforces the notion that the October pump was against the general trend, to which Bitcoin has now reverted. This also plays into the theory espoused by our interviewee @Super_Crypto who told us how Wall St. manipulates the Bitcoin price:
Since current CME volume is low, these unnatural pumps and dumps are created by big money manipulating the price at exchanges, to shake out retail traders and entice hodlers into trading. They don’t care about price, profit or loss – they want to entice the hodlers into trading so they can exercise more control on the price through the futures markets. That is exactly why they are creating these rallies, where they accumulate, raise the price, then crash it down.
Alts Join the Highway to Hell
Alts fared just as badly, with only two coins, DATA and MATIC enjoying the ride, with DATA in particular enjoying a random 300% pump on the basis of nothing whatsoever. Those who were calling for a late-2019 alt season won’t be too happy seeing alts down as much as 20% on the day, although of course there is time for Bitcoin to settle and for alts to enjoy a season in the sun, but it would take a brave man to be putting too much money where their mouths are at this point.