You’re reading First Mover, CoinDesk’s daily markets newsletter. Assembled by the CoinDesk Markets Team and edited by Bradley Keoun, First Mover starts your day with the most up-to-date sentiment around crypto markets, which of course never close, putting in context every wild swing in bitcoin and more. We follow the money so you don’t have to. You can subscribe here.
Bitcoin was down early Thursday to about $11,250, extending Wednesday’s sell-off and falling to its lowest price since early August. [Update: At press time prices had slumped further to around $10,850.]
The cryptocurrency tumbled 4.4% on Wednesday, the most in a month, leading to a heightened level of margin calls and position liquidations. Prices appeared to fall in sync with gold and silver prices, which tumbled as the dollar rebounded following a recent slide.
“Failure to hold at the $12,000 level has turned the milk sour,” the crypto trading firm Diginex wrote in a note to clients. “Leveraged longs have been forced to drink it.”
With stocks soaring to new records after a decade-long climb, traders in traditional markets are asking how much higher they can go in the midst of a global pandemic, openly discussing whether the market is just propped up by government stimulus checks and Federal Reserve money injections.
The conversation around bitcoin is very different. The assumption among many digital-asset investors is the cryptocurrency’s price will definitely, inevitably go higher, much higher. It’s only a matter of time.
Cameron and Tyler Winklevoss, who run the cryptocurrency exchange Gemini, wrote last week that bitcoin prices could reach $500,000, in an extensive analysis that somehow relates to a database of 600,000 asteroids.
Nobody really knows if any of that will pan out, of course. What’s clear is a lot of investors have bought bitcoin because they see it as a deep out-of-the-money option (with no expiration date) on…