Bitcoin Price Drops Another $100 on Massive Trading Volumes

Another day, another ride on the Bitcoin rollercoaster. From a level of around $670 yesterday the price of Bitcoin dropped almost as low as $540 today before returning to a level around $590 now. The total market capitalization of all bitcoins in circulation has dropped from a high of over $11 billion ten days ago to just over $9 billion today - a loss of $2 billion dollars in value in a very short time period.

Yesterday the majority of the estimations for the cause of the crash involved service outages at Bitfinex and residual fallout from the DAO attack hurting the credibility of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. Today however, with the monumental Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term vote taking place in the UK, it is likely that traders are simply reacting to the latest news from the country. The remain camp seems to be winning at the polls which takes the wind out of the worry that the GBP will crash and the need for a hedge with Bitcoin.

Another major factor to take notice of today is the massive trading volumes over the last twenty four hours - $288.5 million in total - about four to five times the normal volume. This may indicate that more than just speculators are in the market today, investors might be pulling serious cash out of Bitcoin to place on a GBP bounce.

Charles Hayter, the CEO of CryptoCompare.com, commented on the situation traders are facing: "Bitcoin markets are paring back gains despite positive moves in various quarters - its a mixed bag of news with brexit and circle's raise. Markets are in a quandary and the result is volatility.

Volumes are huge with the USD/BTC pairs seeing a near record breaking highs of 280k BTC - USD 170 million - a 12% market share of trading with CNY BTC dominant at 84%."