The bitcoin and wider crypto markets have a highly volatile reputation. However yesterday’s significant sell-off still surprised many crypto commentators. But a bitcoin bull believes BTC still has a bright future, despite Friday’s dramatic price drop.
Friday’s vertiginous drop saw bitcoin lose £708 ($900) in a single day, according to coinbase.com data.
This saw the flagship cryptocurrency surrender a significant amount of the recent gains incurred as a result of the massive rally that has occurred since April.
However one crypto analyst thinks bitcoin’s long-term future remains bright.
Matthew Finestone, director of Business Development at Loopring told Express.co.uk: “If you could look five years into the future I think the price will be significantly higher.
“The technology and awareness is so much more robust than it was 18 months ago.
“People are much more bullish than otherwise anticipated and it is a very reflexive asset: when it starts to move people get interested and more people buy bitcoin.”
A bout of coordinated selling is believed to have triggered this sharp downwards movement.
Over a one-week period, bitcoin is still up significantly from its lows of £4,953 ($6,300) but is down slightly from its highs of £6,604 ($8,400) set this Wednesday.
This abrupt reversal arrived on the back of a massive rally that put a significant distance between bitcoin’s current price and its 2018 lows of £2,516 ($3,200).
Dovey Wan, founding partner at Primitive, believes this recent drop was sparked by a large sell order of 5,000 BTC on Bitstamp.
He tweeted: “This is what happened: 1. A jack*** put up an aggregated sell of 5000 $BTC on stamp.
“2. Stamp poor depth + algo glitch? 3. Bmx index is 50% on stamp.
“4. Massive Bmx liq tanked the mkt. 5. Despite all BTC quickly bounced back to $7000… “
Although it is unclear as to whether or not the current drawback is over or if further losses are imminent, it is important that bitcoin breaks above newly formed resistance levels in order for it to continue its impressive upwards surge.
Bitcoin Market Price Chart in RealTime