Nonetheless, some analysts view the decline as a retrace to a consolidation price of $6,000 or even below that level, which the digital currency breached on June 24. Still, cryptocurrency bulls are trying to pinpoint exactly where the selloff pressure might be originating.
“Most cryptocurrencies have been overvalued for a very long time,” said Samson Mow, chief strategy officer at blockchain developer Blockstream Corp. “It’s hard to pin this move on any particular factor, but it feels like the opposite of last year when money piled in as people felt FOMO. Now it’s piling out as they sense panic.”
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For more information on the cryptocurrency market, visit the Bitcoin category.