Bitcoin fees plummet 95% as BTC price recovers from US gov't scare
Bitcoin (BTC) struggled to recover from fresh losses on May 11 as a false alarm over United States government sales spooked markets.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $27,400 at the time of writing.
The pair had seen a flash sell-off the day prior, briefly taking it to $26,850 after claims that confiscated BTC held by the U.S. government was being sold off.
This was subsequently disproved, but for already sensitive crypto markets, the damage was done.
Glassnode not showing any decline in the US Government's Bitcoin balance4 pic.twitter.com/rJHcQ2B8Kc
Among traders, Jackis described the local lows as a “scam” move, while forecasting lower levels to come.
“When the move feels like a scam and trades likes a scam then treat it like it,” he tweeted.
Fellow trader Anbessa also confirmed that he was looking for further downside, like various others focusing on a target zone around the $25,000 mark.
#Bitcoin Roof PatternConsolidation at neckline $27369 after nailing all shorts starting from $30,4k1.LONG breakout $27666 if you're tethered or 2.LONG here with a Stop Loss sub $27269HTF pattern breakout above $28882 while I'm still looking for a throwback to $25,2k… pic.twitter.com/TYZXGyxNFz
Financial commentator Tedtalksmacro meanwhile called May 10 “just another day in crypto.”
In a Twitter summary of the day’s events, he added that U.S. inflation data had delivered for risk asset bulls, implying ongoing declines to come in the next few months.
In a silver lining for Bitcoiners, the past 24 hours saw a major shift in on-chain transaction fees, these deflating considerably after reaching levels which had caused widespread uproar.
Related: Binance ‘FUD’ meets CPI — 5 things to know in Bitcoin this
Read more on cointelegraph.com
