Cryptocurrencies tumbled across the board on Thursday as traders cash out following a bullish month. Bitcoin, the largest cryptocurrency by market cap, fell to as low as $16,448.64 on Thursday as traders cashed in on their profits after reaching a new high of $19,480.53.
YTD Bitcoin is still up over 135% and at a price of $17,335.66 at the time of this report.
Bitcoin was not the only cryptocurrency that tumbled today. Etherum fell over 20%, XRP lost over 34%, Litecoin fell over 20%, Chainlink fell over 28%, Bitcoin cash fell over 25%, Stellar fell over 33% and many others.
However, the prices have recovered to some extent as can be seen below.
Source: Investing.com
Cryptocurrencies are merely numbers in a computer and are protected by encryption mathematics, similar to giant passwords, that hide the name of the person that owns them but confirms that each token is valid.
Virtual currencies are not backed by banks or controlled by bank regulators.
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Ki Young Ju, crypto strategist and founder of the on-chain analysis service CryptoQuant, said on Twitter that more and more whales are sending BTCs to exchanges, but that the long-term on-chain indicators remain bullish:
“All Exchanges Inflow Mean increased a few hours ago. It indicates that whales, relatively speaking, deposited $BTC to exchanges. But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.”
All Exchanges Inflow Mean increased a few hours ago.
It indicates that whales, relatively speaking, deposited $BTC to exchanges.
But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.
Chart 👉 https://t.co/mL1j2ZqVf8 pic.twitter.com/6ErmJHrS4v
— Ki Young Ju (@ki_young_ju) November 26, 2020
By: Ifunanya Ikueze