Black Friday Selloff Erases USD 7+ Billion From Crypto Market Cap Within 2 Hours
It is Thanksgiving, a holiday for Americans, and a day of mourning for Turkeys. Black Friday follows immediately after Thanksgiving, where retailers offer higher discounts than usual. This causes people to absolutely lose their minds; practically every major retailer in the country experiences a violent stampede. You can watch a 10 minute video of this below, which is more mind numbing and more amusing than injecting novocaine directly into your brain with a foot long syringe.
Exactly at midnight UTC/GMT, the price of Bitcoin and other cryptocurrencies began to rapidly drop, already erasing more than USD 7 billion from the total crypto market cap, which now sits at USD 138 billion.
Since the timing is so exact, this is likely due to people selling off their Bitcoin and shitcoins to buy things via online retailers, like Amazon and Overstock. Maybe people are using their Bitcoins and crypto directly to buy things, which would lead to an immediate conversion to fiat via services like BitPay.
The price of Bitcoin was stable for about 2 days around USD 4,500, after dropping from USD 6,300 when the Bitcoin Cash fork happened, followed by SEC enforcement against ICOs which accelerated the crypto sell-off, and the final knock out blow was Bakkt delaying physical Bitcoin futures. Add Black Friday to the list of things that can destabilize the crypto market, with Bitcoin now sputtering around USD 4,200.
Alternative cryptocurrencies are dropping much harder than Bitcoin, with Ethereum down over 10% and now testing the USD 120 level. Ripple was stable during most of the last week’s crash, but not even Ripple can withstand Black Friday, with XRP down 7%.Most major altcoins are down 10% or more.
In the context of Black Friday, perhaps people are selling off their altcoins to obtain Bitcoin to use on e-commerce sites to capture Black Friday deals. Since the altcoin markets are much less liquid than Bitcoin, they are dropping harder than Bitcoin.
GenesisBlockNews believes this could be only the beginning of the Black Friday crypto bust, when midnight hits in the United States in 4-7 hours depending on time zone, the market could accelerate downwards. May God have mercy on us if Walmart has Bitcoin ATMs with selling capability. GenesisBlockNews recommends crypto traders shutdown their computers, turn off their phones, and then isolate themselves in a bathtub.