Cryptocurrencies plunged suddenly in afternoon trading on Wednesday, spurring a guessing game of potential catalyst among enthusiasts and investors. The price of Bitcoin dropped below $10,000 for the first time since July.
As with many things crypto, enthusiasts and skeptics alike were quick to point the finger on Twitter and Reddit, though it remained anyone’s guess as to what the catalyst was.
“From our end, it looks like it was a sell-off to cash settle futures that are coming due on Friday for BTC,” said Dave Balter, chief executive of Flipside Crypto Inc. in Boston. His firm tracks blockchain transaction data, differentiating between users and speculators, and includes large trades and their originations.
“It’s the week before Labor Day. Half of crypto is at Burning Man and the other half is sitting on their hands doing nothing,” said Jeff Dorman, chief investment officer at Arca. “I just don’t think there are a lot of investors willing to defend price right now.” MDT/Bloomberg
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