Is Wrapped Bitcoin (WBTC) Going to Bounce Back after Yesterday’s Drop?
This morning, Wrapped Bitcoin (WBTC) is down 2.10%, which brings the rate to $40,166 (WBTC/USD). That’s only sightly off the mark from the major token it is tied to- Bitcoin, which is at $40,190 today.
Wrapped Bitcoin Takes a Dive
On April 10, Wrapped Bitcoin was well above the $40,000 support level at $43,286, but then it quickly fell late in the day and continued its plunge all through the following day. The WBTC rate stopped its plummet at $39,503, which is lower than Wrapped Bitcoin has been since the middle of March.
The stablecoin tried to fight the loss over the next few days, pushing up past the $40,000 level on the 12th and then again on the 14th. WBTC retained some small gains for most of the 14th but has fallen again today, hovering all too close to the $40,000 level.
This could be the end of its downward movement, however, as trade volume has fallen significantly. Wrapped Bitcoin’s trade volume is down 30.87% this morning, to bring its 24-hour trading to $190,910,872.79. That is a serious drop off that indicates that investors are holding out to see if the market changes before they sell off their tokens.
Where Is Wrapped Bitcoin Moving Now?
WBTC is going to have trouble moving back to the $45,00 level right now, where it was earlier in the month. With trade volume down and a recent downturn for the rate, that is a high bar for it to clear. Instead, we expect some play closer to $42,000, with the low side moving to $38,000 before major upward movement happens.
What’s causing WBTC to drop? This stablecoin moves in conjunction with Bitcoin, and Bitcoin responds to the wider global and economic markets. Inflation is up, war is raging across parts of Europe, and there are some changes in monetary policy taking place. All of that makes it difficult for Wrapped Bitcoin or Bitcoin to move back up anywhere near the all-time high they achieved last November. These crypto tokens tend to do very well when the economic outlook is bright.
Right now is a very unstable and volatile time for the market, especially for lower-ranked cryptos that don’t hold as much sway as Bitcoin and that don’t have the massive market cap of this major cryptocurrency coin. If we see a major economic shift in a positive direction, Bitcoin has the potential to move much higher, and some industry experts have even said it might surpass $100,000 in a year’s time.
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