Bitcoin has bounced back from a 5% loss today as another test of the $10,000 mark failed to materialize.
Over $7 billion was wiped from Bitcoin’s market cap as the cryptocurrency fell below $9,000 earlier this morning. Dropping just under 5% in the space of a few hours, Bitcoin briefly tapped into the high $8,000 regions before climbing back above $9,000 per coin. At time of writing, Bitcoin is still down 2.5% for the day.
This latest retreat marks Bitcoin’s lowest ebb since late May. Still, the largest cryptocurrency by market cap appears relatively unfazed by the action, bouncing back almost immediately to its current price of around $9,146.
The broader crypto market dropped in tandem, stripping a total of $10 billion from the total cryptocurrency market cap. Altcoins have also bounced back, though their recovery is slightly less pronounced.
The cause appears to be a straightforward case of volatility. According to analysts, Bitcoin volatility recently touched a 3-month low, reaching levels witnessed prior to March’s significant Bitcoin crash.
“All I know is that with BTC realized & implied volatility this low, we are due for a big move in either direction that should have some follow-through for a nice amount of time,” tweeted pseudonymous analyst, Cantering Clark, shortly before its dip below $9,000.
All I know is that with BTC realized & implied volatility this low, we are due for a big move in either direction that should have some follow-through for a nice amount of time.
— Cantering Clark (@CanteringClark) June 14, 2020
Despite Bitcoin’s volatility, it seems that adoption may be on the rise. According to data from Glassnode, the number of addresses holding 0.1 BTC broke through previous records on June 13.
“Chart with upwards trend #Bitcoin $BTC Number of Addresses Holding 0.1+ coins just reached an ATH of 3,054,282.000
Previous ATH of 3,054,070.000 was observed on 21 May 2020,” wrote Glassnode on Twitter.
Previous ATH of 3,054,070.000 was observed on 21 May 2020
— glassnode alerts (@glassnodealerts) June 13, 2020