Another Tenuous Spot For Bitcoin

Bitcoin, the largest digital currency by market capitalization, resides just below $6,300 (as of this writing), indicating it is holding the $6,000 area and then some, but concerns linger about the near-term fate of the crypto space should bitcoin fall below $6,000.

Last week, bitcoin prices slumped amid news that Goldman Sachs is cooling on digital currencies. Bitcoin was stung last week by news that Goldman Sachs is on the verge of scrapping its plans to have a digital currency trading desk. The ebbs and flows of Bitcoin’s price have been dependent upon news of institutional trading firms like Goldman Sachs and BlackRock getting involved in cryptocurrencies.

“The broader crypto market was faring much worse Tuesday, with major altcoins showing significant losses in early afternoon trading. The worst performing coin continues to be Ether, which has slumped to a 14-month low of $182.64. Ether ETHUSD, -7.53%  was last at $184.00, down 6.3%,” according to MarketWatch.

Over the short-term, it is critical for bitcoin’s fortunes that some positive sentiment emerges so that bullish traders have reasons to reenter the market.

From The Futures Market

“Meanwhile, trading in bitcoin futures volumes has sunk. On Monday, just 1,965 contracts changed hands on the CME Group exchange, down 28.7% from Friday and down 72.2% from one month ago. Monday also was the lightest trading day over the last four weeks,” reports MarketWatch.

Bitcoin futures debuted on the Chicago Board Options Exchange (CBOE) in December with CME Group following suit just a few days later. The derivatives linked to the largest digital currency by market value are seeing a steady rise in activity.