Bitcoin investors today woke up to a sea of red in the crypto markets as a sharp drop brought Bitcoin down below 60k. It is the first time it went below the 60k mark since October 28, 2021. The price is currently hanging on to 59k as ‘buy the dip’ cries fill the crypto twitter space. It is also worth noting that the Bitcoin Taproot upgrade went live just 24 hours before the price drop.
According to the data tracking platform Bybt, $698 million longs were liquidated. This is a huge number, albeit not the largest. In 2021, this ranks 4th among the largest BTC liquidations. The leading one was a massive $3.22 billion on September 6.
Bitcoin is Down but Investors Still Optimistic
The crypto space is, however, taking the mini-crash positively. Calling it a ‘dip,’ many have rushed to buy their favorite assets at discount prices. Because of the BTC action, the overall market cap of the industry fell by 10.2%. From about $3 trillion, the current overall market cap is $2.7 trillion.
Notably, the top 20 largest cryptocurrencies fell by double-digit percentages. Except for Avalanche (AVAX), Litecoin (LTC), and Bitcoin Cash (BCH), all others crypto assets had more than 11% drops in price.
Is $100K Per Bitcoin by December Still in Play?
Most definitely. According to the Stock-to-Flow (S2F) model, BTC is right on track to hit $100k in December 2021. PlanB from Twitter, the owner of the S2F model, tweeted that ” $98K Nov and $135K Dec prediction still in play.”
So far, PlanB has been dead spot on his Bitcoin price predictions based on his model. He tweeted: “Aug $47K Sep $43K Oct $61K new monthly close ATH! Ok ok, 3% rounding error .. close enough for me Next targets: Nov>$98K, Dec>$135K”, showing that he has been right three out five predictions this year. Many in the crypto space are looking to him for their daily BTC price prediction doses, signified by his large 1.4 million following.
Tesla (TSLA) Stock Falls 3%
Meanwhile, TSLA stock went down by over 3% as the Founder of Tesla Inc., Elon Musk, threatened to sell more stock. TSLA has been one of the best-performing stocks rising by over 1200% in almost two years. For perspective, stocks usually move an average of 10% in a year; therefore, 1200% is quite the feat.
Mr. Musk has much influence on the market. His sentiments (and jokes) are taken seriously by his almost cult-like following. Following the tweets, TSLA stock slumped and is currently trading at $1013.39. In a copycat fashion, BTC followed suit. However, being a volatile space, the sell-off was more violent than traditional stocks.
The Future is Brighter than Ever
The faith that investors have in the bull market of 2021 is unwavering. It seems that the dip was expected, and many are more than happy to scoop up more assets. According to many in the space, an epic price rally is just about to begin. In the market’s history, such dips have been known to rebound with extra strength. It is only a matter of time before the entire market is in the green again.