Bitcoin has seen an absurd amount of intraday volatility over the past day amid the best price action in many months. The coin currently trades for $12,900, a few hundred dollars shy of the daily and year-to-date high set just minutes ago at $13,250.
Bitcoin plunged as low as $12,600 on futures platforms during that move lower. That meant from the daily highs, the cryptocurrency retraced $600.
This volatility is expected as the cryptocurrency remains up around 9% in the past 24 hours, or over $1,000. Analysts are taking note of Bitcoin’s recent price action after the news was published that PayPal will be supporting cryptocurrencies in its app and within Venmo.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
Bitcoin Sees Rapid Intraday Volatility
Bitcoin’s $600 crash in the span of about six minutes has been expected by many analysts. With many being caught off guard by this move, it’s no surprise there’s a lot of movement under the hood.
No data has been published yet about the anatomy of this crash, though some have suggested it was a series of cascading longs on futures exchanges. Many crypto traders have publicly longed this move higher, suggesting some may have been caught off guard by the first spike, then the subsequent sell-off.
This $600 pullback marks the biggest drop Bitcoin has seen today. Even still, the coin remains up 9% on the trading session.
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
Analysts remain confident after Bitcoin’s brief plunge.
Chamath Palihapitiya, CEO of Social Capital and one of the earliest adopters of Bitcoin in Silicon Valley, recently said that the Paypal news will force banks to have a discussion about the cryptocurrency.
The insinuation, of course, being that they may be forced to adopt it, resulting in even greater inflows.
After PayPal‘a news, every major bank is having a meeting about how to support bitcoin. It’s no longer optional… pic.twitter.com/eQrdfa4KJ7
— Chamath Palihapitiya (@chamath) October 21, 2020
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from CoinPriceWatch.com Bitcoin Plunges $600 in 6 Minutes, Then Bounces Amid Price Surge