Bitcoin price drops $ 1,000 before recovering in strongest sell-off in 3 weeks



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Bitcoin fell more than $ 1,000 before rebounding, in the major cryptocurrency’s biggest drop in nearly three weeks.

At around 2.15am UTC, BTC started to drop significantly as its value fell below a previous support area at around $ 18,474.

Spot volume on major exchanges also rose sharply, with Bitcoin’s 24-hour range falling to $ 19,474 and $ 17,284 – its biggest drop since November 7, according to data from CoinDesk 20.

“I think it’s a correction before we break $ 20,000,” said Ki Young Ju, CEO of analytics firm CryptoQuant. “Other long-term indicators on the chain like BTC and Stablecoin Reserve indicate that potential buying pressure still prevails so far.”

Bitcoin has since regained lost ground and changed hands for around $ 18,012.

While the reason for the drop isn’t entirely clear, the sell move comes at a time when Coinbase CEO Brian Armstrong has expressed his worries Wednesday night, following rumors that the U.S. Treasury Department was planning to attempt to track owners of self-hosted cryptocurrency wallets.

The dive sold off $ 950 million in positions on major exchanges, as noted by derivatives data provider Bybt.

“The latest BTC price drop is the first of many tests to get new money to see if they have the vision and guts to actually invest in BTC and the future of digital finance, or if they have they’re just going to repeat 2018 and pull out of the market, ”said Jehan Chu, co-founder and managing partner of Hong Kong-based blockchain investment and trading firm Kenetic.

Most of the other notable cryptocurrencies also fell, with Chainlink (LINK) and Cardano (ADA) suffering the worst declines across the board, losing 18.9% and 16.7%.



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