Bitcoin (BTC) has just dropped below 119,000 USD, currently trading around 118,900 USD, losing 1.17% in value for the day.
Market data from OKX on August 12 shows that BTC experienced a slight adjustment, reflecting the frequent volatility of the cryptocurrency market.
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BTC dropped more than 1% today, with the price down to around 118,900 USD.
BTC price just fell below the 119,000 USD mark.
The cryptocurrency market still shows clear short-term volatility.
How does Bitcoin price drop affect the cryptocurrency market?
A slight drop in Bitcoin price can create diverse reactions in the cryptocurrency market.
Bitcoin is the leading cryptocurrency, so its fluctuations directly affect investor sentiment and the prices of other altcoins. When BTC price drops by 1.17%, many altcoins often 'follow' this trend, leading the market to experience short-term corrections.
In particular, institutional investors and cryptocurrency whales will consider entering positions more carefully when BTC experiences such volatility, increasing overall caution in trading.
Why is BTC price so volatile in the short term?
Bitcoin price reacts quickly to news events and market factors, causing short-term volatility.
Due to high liquidity and the interest of the global investment community, any news about policies, regulatory adjustments, or signs of economic volatility are immediately reflected in BTC prices. At the same time, the strong buying and selling pressure from whales contributes to significant price fluctuations during the day.
These fluctuations create opportunities and risks for short-term traders, while reinforcing BTC's role as a barometer of the health of the cryptocurrency market.
Bitcoin's price frequently reflects global sentiment movements, causing the cryptocurrency market to continuously fluctuate within short ranges.
Quoted by Michael Sonnenshein, CEO of Grayscale Investments, 2023
How does the current BTC price compare to significant historical milestones?
Bitcoin is currently around 118,900 USD, lower than the ATHs set last year.
The most recent Bitcoin price peak exceeded 60,000 USD but remains unstable due to many macroeconomic factors and monetary policy. Nevertheless, the current price is still very high compared to Bitcoin's early stages. This reflects the maturity and long-term interest of the market in this asset.
Recent fluctuations indicate that despite corrections, Bitcoin still maintains its leading position and standard for the entire cryptocurrency market.
What are the main factors affecting Bitcoin price recently?
Many factors from macroeconomic to investor sentiment affect Bitcoin price fluctuations.
Global monetary policy, such as interest rates and USD supply, along with legal decisions regarding cryptocurrencies, play an important role. Additionally, economic reports and geopolitical events also alter market expectations.
Additionally, the activities of whales and large investment funds often lead price increases or decreases in the short term on exchanges.
Frequently Asked Questions
What does daily Bitcoin price change mean for investors?
Daily price fluctuations create advantages for short-term traders, but for long-term investors, it is just a minor adjustment in the overall trend.
How to accurately track Bitcoin price fluctuations?
To track accurately, you should use data from reputable exchanges and market data aggregation platforms like OKX, CoinMarketCap.
Why does Bitcoin often have stronger fluctuations than altcoins?
Bitcoin has the largest trading volume and global interest, so news and liquidity significantly impact its price more than altcoins.
Can Bitcoin price fluctuations forecast long-term trends?
Short-term volatility often does not accurately reflect long-term trends; investors need to conduct comprehensive technical and fundamental analysis to forecast.
Is Bitcoin more stable than traditional financial assets?
Bitcoin remains much more volatile than gold or stocks due to liquidity and the unique nature of the cryptocurrency market.
Source: https://tintucbitcoin.com/bitcoin-rot-duoi-119-000-usd-hom-nay-2/
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