Bitcoin freefall after massive sales in China
The crypto-currency Bitcoin started freefall and depreciated by almost 20% this afternoon after large sales in China, growth of the Chinese yuan and liquidations of short positions by OKCoin. The digital currency price reached the record high values peaking at 1,140.64 USD, but today afternoon for less than 20 minutes lost 200 USD to value of around 940 USD.
For the first time in months, the Chinese currency noted significant gains and the currency markets responded negatively to this news, as the US dollar sank a bit, while the more unstable currencies like Bitcoin lost 19%. The overnight borrowing costs in Hong Kong have risen sharply, which seems to be the driving factor for this change.
Also the number one contract holder on OKCoin just got liquidated on a 10 million USD short position against Bitcoin, which was followed by the collapse in price. Moreover, the Bitcoin freefall was supported by a large number of sales in China. It dropped after a continuous rise in short squeeze transactions after the accumulation of a large number of profit-taking. The today’s crash is the focus of cash-to-cash the results of the disk. The current market’s confidence to do more has been a heavy blow, but also extinguished most of the bullish enthusiasm of investors, and in a short time the market confidence is difficult to be restored.
The investor shared that the collapse in Bitcoin price might be a speculation of traders, selling bullish bets. According to comments, this was massing sale on many platforms with speed of more than two times faster than usual. The large sales collapsed the price in a while, but after the initial shock came small recovery, which probably will continue during the whole Asian trading session. Many economists and investors claim that Bitcoin continue to be strong and reliable finance instrument, so believe that it will recover price.