The price of the bitcoin cryptocurrency plummeted more than 12 per cent over the last 24 hours from a peak of $19,374 a coin on Wednesday to $16,858, according to figures from Coindesk.
Fellow cryptocurrencies like ethereum and ripple have also plunged in price over the last 24 hours, while bitcoin’s fall was its sharpest since the start of September.
The crypto lost over $2,000 in a matter of few hours, falling around $17,000, and at the time of writing, it is priced around $16,858.
Taking into consideration that most bitcoin wallets are in profit, unsurprisingly, some investors are already cashing out some of their gains amid the end of a turbulent 2020.
That said, its recent price action shows its tilting towards an overbought position.
The sharp drop is yet more proof of the cryptocurrency’s volatility and why casual investors are been warn looking to buy into it that they need to do their research and be careful beforehand.
Should You Buy it?
Although it’s more likely that some Bitcoin whales increase their purchases when prices drop to these levels, it is advisable you apply caution before buying, as the volatility in this fast-changing market, could lead to a significant loss of capital.
However, if things get really terrible, I believe this could be another chance to buy bitcoin below $15,000.
Some experts attributed the sharp drop in Bitcoin to massive sell off. According to analyst, Ki Young Ju, wrote on the social media platform Twitter that these holders of large sums of bitcoin had sold off their holdings, causing the price to fall.
According to analyst Glassnode, the number of investors holding at least 1,000 bitcoin reached an all-time high this week, with the concentration of large sums of the cryptocurrency in the hands of a small number of investors giving them a significant influence on the market.