On Monday, BTC price rebuilt after a 14% fall over the weekend because of the large leverage, benefit and high expectation of new regulations — and even some trading platforms collapsed.
With BTC attaining the all time high of 63,000 US dollars last week, it crashed over the weekend to 51, 000 US dollars of 59,000 US dollars. There were other criptor-like cryptocurrencies like Ethereum and Dogecoin, too.
On Monday the price of Bitcoin steadily rose to US$ 57,000 at 4pm.
After the high record, which triggered a “turnout” Xu Tong, senior analyst for Huobi, an important Bitcoin tradition, said the market lacks optimistic expectations.
Following the record high market expectations, which led to a “sharp correction,” says Xu Tong, a senior analyst at Huobi, a major trading platform of Bitcoin.
The excessive early profit accumulation induced pressure to sell Bitcoin’s investments.The sales of one of the world most used exchanged site, Coinbase has also started generating controversies in the market.
The top managers of Coinbase sold their stock immediately after the Nasdaq big cryptocurrency last week.
Turkey prohibited Bitcoin from trading and payment.
Another main explanation for the large dump is high leverage, which KuCoin, an IDG-investing cryptocurrency trading site, claims was used in margin trading to achieve higher revenues.
“Market” “The high-leverage market is extremely fragile. Once price falls, retail investment panic will cause more declines,” said Johnny Lyu, CEO of KuCoin.
Chinese Bitcoin investors found it difficult to reach commercial platforms during the fall of the weekend, causing considerable losses.
But the upturn shows that investors still trust Bitcoin for a long time.