Crypto market correction does not cause panic moods

Bitcoin launched a wave of decline after an unsuccessful attempt to hold growth above $8,000. According to the observations, the BTC was inclined to show corrections of 30% after each massive rally. In our case, we can talk about a decline from $9,000 to $6,300. This is a very sharp decline for the classical markets, but it is unlikely that it will seriously frighten investors who have repeatedly encountered such high volatility.

At first glance, it sounds paradoxical, but a decline from recent highs can only strengthen confidence in the repetition of historical patterns and bring new buyers to the market. The trading volume of the first cryptocurrency climbed by 9.5% to $23 billion, indicating the activation of the sales by bears.

Market participants often panic because of whales actions. The public blockchain makes it possible to monitor the activity of the largest wallets, that's why holders of massive amounts of digital assets can use it for their own purposes. However, no one really knows what caused these or other movements of bitcoins. Public actions can be directed to create the desired price dynamics. The decline of the market to local minimums may be useful to big business.

The altcoin market is declining just as massively: Top 10 coins lose 7% -10%. The total market capitalization of all cryptocurrencies fell within a day by 7.5% to $250 billion, while daily trading volume grew by 11% to $81 billion. However, if Bitcoin gets support at the upper limit of $7K, this can attract buyers to the market, who were waiting for the opportunity to enter the market at a discount on the basis of the correction after the rally.

Although the general market mood is very positive, everything that is happening masks the rather unpleasant truth about Bitcoin and almost all altcoins: they are still under the complete control of speculators. Most market participants are "hodlers", or they are speculating on prices, while Satoshi's "vision" was to spend digital money on everyday needs.

The Chainalysis data showed that for the period from January to April, 89.7% of all activity in the Bitcoin ecosystem are transactions in the direction of crypto exchanges. During the first 4 months of 2019, only 1.3% of transactions concerned retail, which is not surprising: who will pay for coffee with Bitcoins, if tomorrow the price can soar by tens of percent.


FxPro UK Limited is authorised and regulated by the Financial Services Authority, registration number 509956. CFDs are leveraged products that incur a high level of risk and it is possible to lose all your capital invested. Please ensure that you understand the risks involved and seek independent advice if necessary.

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. FxPro does not take into account your personal investment objectives or financial situation. FxPro makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of FxPro, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without the prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07) and FxPro UK Limited is authorised and regulated by the Financial Services Authority, Number 509956.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin at $5,000 charts begin to pop up on Twitter, how likely is such a massive correction?

It’s not uncommon to see considerable corrections in the market after massive rallies like the one Bitcoin is experiencing. Around $80 billion were wiped out from the market in less than 24 hours, and some analysts believe the price could go even lower.

More Bitcoin News

Ethereum transaction fees skyrocket as price collapses

At the time of writing, Ethereum (ETH) is trading at $520. The second-largest digital asset, with the current market capitalization of $59 billion and an average daily trading volume of $30 billion, has lost over 12% on Thursday. However, it is still in a green zone on a week-to-week basis.   

More Ethereum News

Cardano Price Prediction: ADA must overcome a massive supply barrier to extend a recovery

Cardano (ADA) has climbed to the 8th position in the global cryptocurrency market rating. The coin hit $0.194, the highest level since July 2020, on November 24, before the correction started. 

More Cardano News

SushiSwap Price Analysis: SUSHI rebounds strongly as whales buy the dip

The entire cryptocurrency market suffered a massive crash on Thursday. Sushiswap price dropped by more than 20% within hours but managed to recover almost instantly, hitting $1.285.

More SushiSwap News


Bitcoin Weekly Forecast: BTC makes new yearly highs while its network activity looks worrisome

Bitcoin has lived through the best week since February 2018. The pioneer digital currency price gained over $2,000 in less than seven days. The bullish momentum allowed it to reach a new multi-year high of nearly $18,800, marking November 2020 one of the strongest bullish months ever. 

Read the weekly forecast