Alt coins,  Bitcoin,  Markets Report

Markets Report: Bitcoin drops $3,500 in a day as Reddit GameSpot spat ruffles feathers

$30,000 fails to withstand another retest as familiar monthly lows rapidly take to the stage in daily trading

Bitcoin fell below $30,000 support on Jan. 27 as existing market trepidation grew thanks to a bizarre bull run in a single U.S. stock.

Data from CoinMarketCap and TradingView showed Bitcoin losing steam during Wednesday trading, with highs of $32,860 swiftly flipping to daily losses of 11%.

Trader on BTC: “Opportunities coming”

At press time, BTC/USD was still undecided, focusing on an area just below $30,000 as concerns mounted that another dip was imminent.

“The most likely case is that we’re going to see a corrective period in which everything calms down,” popular trader Michaël van de Poppe forecast in his latest YouTube update.

“Especially the majors; they’ve had their first big move and often we get a corrective month in February.”

He added that before that broad consolidation phase entered, altcoins still had room to outperform. This would likely form a sorely needed countermove for traders, with the top 10 cryptocurrencies by market cap down between 4% and 11% on the day. 

“Opportunities coming,” he advised traders in a subsequent tweet as BTC/USD continued to fall.

BTC/USD losses accelerate on Wednesday. (Photo: TradingView)

With interest disappearing from Bitcoin, however, altcoins likewise took a back seat to U.S. tech stock GameStop ($GME), which swept the headlines after it gained 700% in just two weeks.

Originating from intense discussion on Reddit, the $GME gains caught the attention of both the media and regulators this week, igniting a fierce debate over market freedoms. Adena Friedman, president and CEO of Nasdaq, caused particular outrage when she hinted to CNBC that the platform would halt trading altogether based solely on discussions underway among Reddit users.

“…We do have technology that monitors social media chatter and if we see a significant rise in the social media channels and then we also match that up against unusual trading activity, we will potentially halt that stock,” she told the network. 

“The only real market”

Bitcoin proponents, some of whom argued that GameStop went hand in hand with Bitcoin as an example of decentralized investment consensus, were quick to balk at what they saw as corporate overreach.

“Stupendously stupid comment by NASDAQ. I didn’t know they had gone ‘Full retard,’” RT host Max Keiser retorted to Friedman.

Keiser said that Reddit users choosing to enter $GME was an example of capitalism, and that hedge funds caught unaware were simply the natural victims of free market processes.

“Bitcoin does not stop because someone went to sleep. Bitcoin does not stop because of social media chatter. Bitcoin does not stop because of fast-paced price discovery,” Michael Goldstein, president of the Satoshi Nakamoto Institute, added. 

“Bitcoin does not stop. Bitcoin is the only real market.”

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Anthony Bevan is a journalist focusing on disruptive finance and cryptocurrency, along with the changing face of the market as Bitcoin gains mainstream adoption. Journalists covering cryptocurrency for Modern Consensus May hold positions in some of the currencies they write about.