Bitcoin Crash Causes Markets to Collapse

We hate to say we told you. In yesterday’s Market Watch, we were discussing the possibility of a Bitcoin correction which should take place soon. And it looks like it will soon be.

Bitcoin had been in charge for 36 days – according to the Relative Strength Index – and many waited nervously for when Bitcoin’s luck would change. Well, that day is today. Just 24 hours earlier, Bitcoin was flirting with $ 19,500, but shortly after noon yesterday the price of Bitcoin started to drop.

Then at 3:30 p.m. UTC, he fell off a cliff, losing $ 500 in a matter of minutes. In three hours he had lost $ 1,000. What happened? Some things. The first was an increase in activity towards exchanges. Several whales – those with more than 10,000 BTC – appeared to transfer significant amounts of currency on the exchanges.

Historically, these movements tended to be a signal about to leave their positions. Indeed, the chart provided by Ki Young Ju, the CEO of chain analytics firm Crypto Quant shows entries peaking when the dive has started.

Others have suggested that the reopening of the ailing OKEx exchange, which holds some $ 13 billion worth of Bitcoin, was partly to blame. However, the exchange has not been opened for another five hours, so there is less of a strong signal there, but it could signal further losses later in the day.

And others put it in the natural order of things.

Either way, if you were to buy at the top of the market, your Bitcoin holdings are worth 7.8% less than yesterday. If you had bought Ethereum, you would be 13.5% poorer. In fact, all of the top 20 cryptocurrencies by market cap have turned red, with XRP taking 20% ​​losses – but it’s still up 80% for the week.

Overall, it was a murderous day for crypto-watchers as America prepared for Thanksgiving. Bah Humbug.

Nasdaq breaks records thanks to Tesla

On Wall Street, when yesterday was the all-time high for the Dow Jones Industrial Average, overnight the Nasdaq responded with a rally of its own.

Tesla led the charge, taking it to all-time highs early in the session. Its market capitalization is now north of $ 500 billion. This valuation places Elon Musk’s electric car company in the top 10 most valuable companies, according to Asset Dash. Fun fact, Bitcoin slipped three places after the market crashed yesterday.

The Dow Jones pulled back from its all-time high yesterday as investors pulled money from companies still battered by COVID and returned to the relative safety of Nasdaq tech stocks.

This was reflected in a forecast from Goldman Sachs which said it had downgraded the US forecast for the fourth and first quarter of 2021 as the country continues to see a record number of new cases.

US markets are closed today for Thanksgiving, which will be a relief for some and frustrating for others who want this wave of the market to never stop.