Bitcoin has seen a crazy amount of intraday volatility over the past day amid the best price-performance in many months. The coin currently trades for $12,800 level, a few hundred dollars modest of the daily and year-to-date high set just minutes ago at $13,250.
Bitcoin dived as low as $12,600 on futures platforms during that move lower. That suggested from the daily highs, and the cryptocurrency retraced $600.
This volatility is anticipated as the cryptocurrency remains up around 9% in the past 24 hours, or over $1,000. Analysts note Bitcoin’s current price action after the news was announced that PayPal would be carrying cryptocurrencies in its app and within Venmo.
Several analysts have expected Bitcoin’s $600 crash in about six minutes. With many being caught off guard by this move, it’s no surprise there’s a lot of movement under the hood.
No data has been published yet about this crash’s anatomy, though some have recommended it was a series of cascading longs on futures exchanges. Many crypto traders have publicly longed this move higher, meaning the first spike may have caught some off guard, then the subsequent sell-off.
This $600 withdrawal marks the most significant drop Bitcoin has seen today. Even still, the coin persists to be up 9% on the trading session.
Analysts continue confidently after Bitcoin’s brief plunge.
CEO of Social Capital and one of Bitcoin’s earliest adopters in Silicon Valley, Chamath Palihapitiya, recently said that the Paypal news would force banks to discuss the cryptocurrency. It’s evident that the insinuation is that they may be forced to adopt it, resulting in even more significant inflows.