Wrapped Bitcoin (WBTC) Follows Bitcoin into Sharp Freefall
This morning, Wrapped Bitcoin (WBTC) has fallen 5.06%, bringing the WBTC rate down to $19,693 (WBTC/USD). The decline started late last night and has only started to slow in today’s early morning hours.
The Falling Pair
Similarly, Bitcoin (BTC) is down 5.03% to a price point of $19,702 (BTC/USD). Of course, Wrapped Bitcoin is a stablecoin that is linked to Bitcoin, moving with it at an almost even pace. As Bitcoin moves, Wrapped Bitcoin follows not far behind.
This morning’s sharp drop is a stark contrast to a relatively promising 30 days for the coins. Wrapped Bitcoin’s rate stood at $19,504 30 days ago. After an uneven couple of weeks where the price did not deviate too far from that beginning, the price began to climb sharply late in October.
We saw Wrapped Bitcoin soar to $20,821 on October 26th and then move even higher a few days later on November 5th to a price of $21,379. From October 25th to November 5th, the WBTC rate increased by about 10.5%. In that time, the trade volume increased from $92 million per 24 hours to $156 million- an astounding increase of 69%.
Will the Bear Trend Continue?
The worry now is that WBTC and BTC’s rates will drop even further following this morning’s bearish movement. Should investors be concerned that they are about to lose all their gains from the last couple of weeks?
We do not think so, as the slowing momentum we are seeing indicates that investors are holding off on selling much more of their coins and waiting to see what the market does. This could be a chance for the rate to turn around and a bullish trend to begin.
Why did the market drop so much this morning, falling 4.79% for the day so far? It could be due to fears of an impending market crash because of concerns related to the Almeda trading firm’s balance sheet. The FTT has fallen by 40% since that information broke, sending a ripple effect through various financial markets. That news has investors worried and acting erratically, but the sharp declines also give other investors the opportunity to swoop in while the prices are low and buy the market, at least temporarily.
Look for some interesting action in the market over the next few days. We probably won’t see a steady trend one way or the other but rather an erratic movement that is tough to predict.
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