Between Friday and Saturday, BTC plummeted from an already shaky position and was down more than $11,000 (£8,295.59) as the weekend commenced. Since then, it has made an understated recovery, with its value sitting at $50,441.67 (£38,040.33) as of December 6. According to recent analysis, cryptocurrency traders have become more “risk-averse” following the dramatic weekend, but the latest movement is par for the course.
European cryptoplatform Currency.com has recorded a “significant drop” in BTC trading activity.
The site found trading volumes for BTC/USD have dropped by 90 percent since the weekend and the number of traders by 48 percent.
Steve Gregory, US Chief Executive Officer for the platform, said this marks a “pullback” of the cryptocurrency market.
But he dismissed the recent movement as “healthy” and said it provides an opportunity for some investors.
Mr Gregory said: “The economy is flush with liquidity, and with rising retail interest in financial and crypto markets, we are in unprecedented times.
“Market corrections are healthy and present opportunities to buy the dip.
“In fact, Bitcoin’s correction – down 20 percent from all-time highs – is actually the least severe we have seen in 2021, indicating that the bull market remains intact and investors still see upside potential.”
Mr Gregory added there could also be a “big move” on Bitcoin’s horizon.
More interest in Bitcoin futures is ultimately stirring the pot and could promote market volatility.
He said: “This, coupled with flows into bitcoin ETFs being close to all-time lows and with the ETH/BTC market poised for a breakout, volatility and big moves are increasingly likely.”
Other analysts aren’t quite so easygoing about the latest Bitcoin pattern.
Matt Dibb of Stackfunds, a Singaporean crypto fund distributor, said BTC’s usual post-decline strength is absent.
“One reason why ETH has not sold-off as dramatically could be because of the value investors assign to ETH.
“It is more useful and many cryptocurrency applications are built on the ETH network, such as DeFi and the Metaverse.”
Ethereum had a much easier weekend than Bitcoin and is much closer to its Friday value.
On December 3, the coin sat on a value of $4,630.56 (£3,492.11), and as of December 6, it is worth $4,341.93 (£3,274.44).