Bye Bye Bitty ??

Bitcoin continued its slump after losing 12 percent Wednesday and triggering the biggest cryptocurrency sell-off since February.

The 10-year-old token fell 3.4 percent to $5,362.96 as of 10:30 a.m. in London after it plunged through a key resistance level

Many of Bitcoin’s closest peers also slid Thursday, while Bitcoin Cash, which will split today into two coins, rose 1.5 percent.

As the dust settled a day after the Bloomberg Galaxy Crypto Index’s 15 percent tumble, speculation over its causes includes today’s debut of the new version of Bitcoin Cash. Traders are mulling whether the coin, which itself broke off the original Bitcoin in 2017, is sucking investment and minersaway from the largest crypto.

“The Bitcoin Cash hard fork is proving far more destabilizing than initially thought as numerous competing factions muddy the landscape,” said Stephen Innes, head of trading for the Asia Pacific as Oanda Corp.

Oanda’s Innes said the disruption over the new Bitcoin Cash fork has created too much “noise” that triggered a “when in doubt get out´´ cause and effect. He said an eventual break below $5,000 for Bitcoin “opens the door to a test of $2,500 as Bitcoin retail traders move from buying on dip to full-out panic mode.”
Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes