Massive Bitcoin Plunge Nothing More Than Traders Being Traders, OKCoin Exec Says

Bitcoin dove more than $1,000 on some exchanges on June 2, although the event seems to be the result of simple trading activity, according to OKCoin's head of market development Matthew Ficke.

"Price movement like we saw yesterday typically attracts short-term traders trying to position for a larger break higher," Ficke said of the day prior, when Bitcoin surged notably past $10,000.

Bitcoin's price surged up past $10,400 from $9,450 on June 1, only to fall back down to $9,275 on the following day.

The first asset even fell below $9,000 on some exchanges, visiting $8,600 on BitMEX. Ficke noted the $10,400 price level as an important zone historically.

Since fall 2019, Bitcoin has visited this zone three times, unable to break past with significant staying power.

"Active traders positioning for breaks often manage risks by setting nearby stop levels," he said, referencing stop-losses - levels traders set in advance that automatically close trading positions at a loss, preventing further losses.

"Unless momentum carries the market higher, their long positions can quickly become vulnerable. This dynamic can exaggerate short-term price volatility." Ethereum stands tall in bullish market.

In terms of recent bullish crypto prices, Ficke said Ethereum could lie as a catalyst behind the action.

Since Bitcoin's halving a few weeks ago, the asset's market dominance has fallen.

Regardless of the reasoning, crypto asset awareness continues rising, evident in a number of categories, including increased interest seen by algorithmic trading startup Floating Point Group.