Bitcoin Price Crashes $70 as Traders Take Profits

Welcome to the world of Bitcoin, where the markets trade like tsunamis. In an unexpected turn of events Bitcoin’s price has crashed over $70. The crash came amid a correction of the market as traders took profits. It seemed that the price has been rising with no end, but the inevitable has come. 

Bitcoin’s price has been on the rise since the beginning of the year, only experiencing one mid-sized crash on Feb 9th as a result of the PBOC statements. Today Bitcoin has broken many ATH’s and rose to a peak of $1220, however just now the price crashed over 6% to $1155. The media has been covering Bitcoin’s price surge nonstop the past two days. Those that remember December 2013’s price rally where Bitcoin’s price rose past the $1000 mark, may have noticed that Bitcoin appeared everywhere on mainstream TV stations and various high ranking news outlets. As everybody caught wind of the hype the price crashed a few days later.

Many experienced traders like to take advantage of the hype and claim profit while they still can. It is a common investment strategy for more risky players to “buy on the way down and sell on the way up”. Keep in mind though, since the Bitcoin market is still quite unregulated major volatility goes both ways. Meaning that even though Bitcoin’s price just dropped $60 in a matter of minutes, it has also gone up $60 in the previous 9 hours.

Source: Bitcoinwisdom

As discussed in our previous Bitcoin price article, this volatility can be attributed to the expected Bitcoin ETF’s decision. Currently the odds that the Winklevoss Bitcoin ETF application will be approved is a mere 36%. If the approval is positive, then chances are Bitcoin’s price will skyrocket. However, if the outcome is negative expect much more corrections up ahead.

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