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BITCOIN DROP SENDS IT TO THREE-WEEK LOW

  • Cryptocurrencies fell sharply on Friday as a result of rash selling that brought bitcoin to a three-week low.
  • Bitcoin dropped as much as 7.7% to $21,404 in a short period of time; Ether was down 8.8% at $1,685 by last trading.
  • On Friday, cryptocurrencies dropped quickly as a result of rash selling that brought bitcoin to a three-week low.

Around 0640 GMT throughout the European morning, Bitcoin dropped as much as 7.7% to $21,404 in a short period of time. At 1138 GMT, it had marginally rebounded before continuing to fall, down 8.2% on the day, to trade around $21,400.

At the time of last trading, Ether was down 8.8% at $1,685.

The cause of the decline was unclear.

“It’s not showing the pattern of a flash crash, as the assets didn’t immediately rebound sharply but sank even lower in the hours that followed,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

“It seems likely that this was as a result of a large sale transaction.”

According to Streeter, it appeared that cardano, a cryptocurrency, had been the first to shift, followed by bitcoin and ether, and then other cryptocurrencies like the altcoin dogecoin.

As investors avoid risky investments due to Federal Reserve rate hikes and extremely high inflation, cryptocurrencies have fallen precipitously so far this year.

The failure of bitcoin to recover its losses, according to Craig Erlam, senior market analyst at Oanda, “suggests there is substance to the move.”

Such unexpected changes are typical of the extremely volatile bitcoin sector. On June 15, bitcoin fell more than 15% as a result of investors becoming alarmed about TerraUSD’s demise and the blocking of customer withdrawals by a prominent cryptocurrency lender. View More

Due to the move on Friday, bitcoin is on pace to have its worst day since the crash in June.

“Speculating in cryptocurrencies is extremely high risk and is not suitable for the vast majority of people,” Hargreaves Lansdown’s Streeter said.

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