When Will Wrapped Bitcoin (WBTC) Recover from Monday’s Major Drop?

All week long, Wrapped Bitcoin (WBTC) has shown little signs of movement following a drop of 4.38% on Monday. That was followed by further drops, resulting in a negative change of just over 10% by Wednesday. Will this crypto stablecoin be able to recover from that anytime soon?

Wrapped Bitcoin’s Current Struggles

Wrapped Bitcoin is a stablecoin connected to Bitcoin (BTC), so as the BTC rate moves, the WBTC rate will also move, with some slight difference in price, but fairly close.

The WBTC rate was down for the month of August starting Sunday, the 25^th. That rate jumped slightly from $21,621 (WBTC/USD) to $21,756 on Monday. Then, there was a sharp downward movement that pushed the rate to a low of $20,193 for the day by the end of Monday night.

The rate fell further over the next couple days, bottoming out at $19,560. It has not risen much since then, climbing only sporadically and then dropping. Today, the WBTC rate is at $19,768, with Bitcoin faring little better at $19,764. Both cryptos are down about 1.70% today.

Further damaging the chances that WBTC will recover anytime soon is the trade volume, down 37% for the last 24 hours.

What Do We Expect from WBTC Moving Forward?

What a lot of investors are wondering right now is how long it will take for BTC and WBTC to recover back up to the $21,500 level they were at before the activity on Monday. That’s an increase of 9.13%, which WBTC is perfectly capable of pulling off over a period of a few days. We have seen an increase of that magnitude happen several times in the last few months.

We do think the BTC coin (and therefore, the WBTC stablecoin) is due for an increase soon. There could be a bullish trend upcoming for this crypto, so investors should probably hold tight rather than selling off in frustration.

We think it is unlikely that the coin will drop much further from here. It’s more likely that it will increase sometime within the next few days, possibly back up to where it was on Sunday, around $21,500. Look out for movement over the upcoming weekend, in particular.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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