Market Wrap: Bitcoin Dips to $10.1K, Ether Drops to $330 on Sell-Off Session

Bitcoin and ether price fell precipitously Monday as markets globally roil in uncertainty.

AccessTimeIconSep 21, 2020 at 8:21 p.m. UTC
Updated Aug 19, 2021 at 4:28 a.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Bitcoin and ether both dropped Monday as global markets conducted a selling session.

  • Bitcoin (BTC) trading around $10,492 as of 20:00 UTC (4 p.m. ET). Slipping 3.6% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $10,179-$10,994.
  • BTC below its 10-day and 50-day moving averages, a bearish signal for market technicians.
  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Bitcoin trading on Coinbase since September 19.
    Bitcoin trading on Coinbase since September 19.

    Bitcoin price fell sharply Monday, with a lengthy sell-off session starting around 07:00 UTC (12:00 a.m. ET) and dropping to as low as $10,179 on spot exchanges such as Coinbase before gaining to $10,492 as of press time. 

    “The market is still positioned short with persistent negative funding over the past month and under-allocation to BTC,” said Cindy Leow, portfolio manager for 256 Capital Partners, a market-neutral trading firm. ”At this stage, sellers are still in control of the market."

    As bitcoin tumbled Monday, sell liquidations on derivatives exchange BitMEX picked up, putting pressure on price. In fact, over the past 24 hours, BitMEX liquidated over $34 million in long positions, the crypto equivalent of a margin call.

    Liquidations on derivatives exchange BitMEX the past 24 hours.
    Liquidations on derivatives exchange BitMEX the past 24 hours.

    Darius Sit of crypto quant trading firm QCP Capital said the global equities markets are not faring well to start the week. “Stocks are getting hit,” Sit said. indeed, major indexes are all in the red Monday:

    Michael Rabkin, of crypto liquidity and market making firm DV Chain, said markets across the board are in “risk-off” mode, when asset holders unload for safer investments in the face of broader economic tumult. “Governments continue to print money and questions are left unanswered due to covid,” said Rabkin. “We're seeing risk-off across all the markets right now which is having a direct effect on crypto.”

    QCP Capital noted in its Monday investor letter that both bitcoin and ether were riding high just last week - ether hit $394 on Sept. 17, bitcoin topped $11,178 Sept. 19.

    Spot bitcoin trading on Coinbase the past week.
    Spot bitcoin trading on Coinbase the past week.

    Monday’s sell-off may prove to be an assessment of crypto’s resiliency, according to QCP. “We’ve had a retest of $11,000 in bitcoin and almost $400 in ether,” QCP’s note stated. “We think this week and next is where the rubber meets the road.”

    Ether options shift on price drop

    The second largest cryptocurrency by market capitalization, ether (ETH), was down Monday trading around $345 and slipping 7.2% in 24 hours as of 20:00 UTC (4:00 p.m. ET). 

    Implied volatility, the market’s expectation of ether’s future price movement, has dipped below realized volatility, ether’s current movement based on historical data. It’s a shift in the ether options market not seen since July.

    3-months daily implied versus realized ETH/USD volatility.
    3-months daily implied versus realized ETH/USD volatility.

    William Purdy, an options trader and founder of analysis firm PurdyAlerts, said ether’s price descent, hitting as low as $330, Monday, is helping fuel the switch. “This recent discrepancy in implied volatility and realized volatility is due to the options market following the underlying asset price momentum in the short-term,” he said. 

    Purdy said this means options premiums are likely undervalued and buyers can take advantage - at least for the time being. “Implied volatility will likely increase again when options buyers seek to close their positions,” Purdy added.

    Other markets

    Digital assets on the CoinDesk 20 are mostly in the red Monday. Two notable winners as of 20:00 UTC (4:00 p.m. ET):

    Notable losers as of 20:00 UTC (4:00 p.m. ET):

    Commodities:

    • Oil is down 3.1%. Price per barrel of West Texas Intermediate crude: $39.60.
    • Gold was in the red 2% and at $1,910 as of press time.

    Treasurys:

    • U.S. Treasury bond yields slipped Monday. Yields, which move in the opposite direction as price, were down most on the 10-year, in the red 3.5%.
    The CoinDesk 20: The Assets That Matter Most to the Market
    The CoinDesk 20: The Assets That Matter Most to the Market

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.