Luno GM for Africa, Marius Reitz, explains what led to the 18% single intraday drop in the price of Bitcoin

  • Market sentiment, the impact of new Bakkt exchange on NYSE affect Bitcoin price.
  • Bitcoin recorded the largest intraday drop in the cryptocurrency’s price since January 2018, sending shockwaves through cryptocurrency exchanges across the world.
  • Marius Reitz, General Manager for Africa at Luno, explains what led to the 18% in Bitcoin value.

On Tuesday, September 24, the price of Bitcoin went south, shedding 18% to $8,423 below the $9,000 mark it has been trading since June 2019.

That was the largest intraday drop in the cryptocurrency’s price since January 2018, sending shockwaves through cryptocurrency exchanges across the world.

Recording it's highest ever value on December 17, 2017, at $19,783.06, the market experienced a volatile market in 2018, burning the hands of some traders especially in Africa, according to checks by Business Insider Sub-Saharan Africa.

In December 2018, the digital coin traded to its lowest in a year at $3,222.67. With this volatility in the market, African traders and analysts had told Business Insider SSA that the 'alternative currency' may see a further drop in 2019.

Explaining the latest Bitcoin price collapse, Marius Reitz, General Manager for Africa at Luno, said, “There have been several theories put forward for the loss in value of Bitcoin. 

However, we mustn’t lose sight of the main factors that led to the drop. In understanding these factors, we will be better positioned to take the necessary steps to ensure Bitcoin and other cryptocurrencies fulfill their potential as an effective way of storing, maintaining and exchanging value.”

Reitz listed negative sentiment, the impact of new Bakkt exchange (a much-hyped digital asset platform powered by Intercontinental Exchange Inc. (ICE), the parent company of the New York Stock Exchange (NYSE – which began trading on Sunday) and speculation and volatility in the new asset classes which Cryptocurrencies fall in.

On Thursday morning, the digital currency trades at $8,422, according to the Coindesk. 

Crypto investors believe that the currency is likely to return bullish and record more gains before the end of the year.

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