Hot and then cold, up and then down… Bitcoin was like a Katy Perry song this week.

Flash Crash

Over the weekend, Bitcoin fell from a high of $10,387 to $9,700 in less than 48-hours. It then started to climb back above $10,000 but was rejected around $10,300 on Wednesday. In less than an hour, prices fell sharply by more than $800 to a 14-day low of $9,437 on Voyager. The violent flash crash was Bitcoin’s fifth largest hourly price drop of all time, drawing comparisons to the crypto market’s 2017 sell-off.

Unfortunately, altcoins didn’t escape this week’s volatility. Bitcoin Cash (BCH), Tron (TRX), EOS (EOS), Verge (XVG), Ontology (ONT), and several other top assets lost more than 20% over the last seven days.

Longs Liquidate

While the exact reason is unknown, many in the crypto community are blaming derivatives for the market’s sudden dip. On Wednesday, close to $120 million worth of long contracts were liquidated on BitMEX alone. After reaching near all-time highs earlier in the week, longs on BitFinex plunged by 5% from 45,190 to 42,965 in less than 60 minutes.

Image courtesy of Skew.

Bitcoin is currently trading comfortably above $9,700 and many are calling this week’s pull back a “bull breather.” Since the start of the year, Bitcoin has gained more than 35%, and this week, confirmed a "golden cross" after the 50-day moving average (MA) crossed above the 200-day MA.

The mixed signals have left the market in limbo and traders on the sidelines waiting for a clear indicator. Whether the market moves up or down next, it’s the volatility that makes crypto fun, right?

Tweet of the Week

Voyager Buys Circle Invest to Expand Userbase of Crypto Traders

Paxos, Credit Suisse Claim First Blockchain-Based Settlement of US Equities

New York-regulated crypto startup Paxos, in conjunction with Credit Suisse and Nomura-owned broker-dealer Instinet, has claimed bragging rights for the first live blockchain-based settlement of U.S. equities. Read more.

Michael Bloomberg has taken Andrew Yang’s place as the cryptocurrency candidate

Michael Bloomberg has unveiled a stance on cryptocurrency policy, making the businessman and former mayor of New York the only active Democratic presidential candidate to directly address the topic. Read more.

Cash-Free Sweden Begins Testing World’s First Digital Currency for Everyday Banking

Sweden is attempting to work out the technical challenges of issuing a central bank backed digital currency for everyday banking activities. Riksbank announced on Wednesday that it is currently testing its e-krona. Although no launch date has been set, its release would make it the world’s first central bank digital currency (CBDC). Read more.

Boerse Stuttgart Subsidiary Launching Institutional Crypto Custody Services

Blocknox, a subsidiary of second-largest German stock exchange Boerse Stuttgart, is expanding its cryptocurrency custody service to institutional players. Read more.

Binance CEO Changpeng Zhao Says Bitcoin Having not Priced in yet

Changpeng Zhao, the founder and CEO of major crypto exchange Binance, suggested that Bitcoin’s (BTC) price has not yet adapted to the upcoming block reward halving. Read more.

Russia Decides to Outlaw Crypto as a Means of Payment

Russia’s Federal Security Service (FSB) agreed with the Central Bank of Russia that cryptocurrencies should not be allowed as means of payments on the territory of Russia, a local portal reported.  Read more.