The bears continued their stranglehold over Bitcoin as the price descended past the $6,000 price level before settling to $6,091.08 as of 10:45 a.m. ET. The price has fallen almost 5% in the last 24 hours and 14% within the last seven days.
The leading digital currency has fallen as of late, particularly when news broke that the US Securities and Exchange Commission is postponing their decision on a bitcoin ETF filed by investment firm VanEck and blockchain technology company SolidX.
Bitcoin has fallen over 15% after breaking through the $8,000 price mark near the end of July–a critical price level seen by bulls as one that would eventually set the stage for a rally. Fast forward over a month later to day, and a tangible rally has yet to materialize.
Nonetheless, some analysts view the decline as a retrace back to a consolidation price of $6,000 or below, which the digital currency breached on June 24. Still, cryptocurrency bulls are trying to pinpoint exactly where this 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.”
No Correlations with Turkey
Some may posit that the price weakness could be stemming from the economic turmoil in Turkey that has been dominating the headlines. However, other analysts feel that this is mere happenstance in which no correlations exist between cryptocurrencies and geopolitical news.
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“Correlations historically have been extremely low between cryptocurrencies and other asset classes,” said James Quinn, head of markets at Kenetic, a blockchain company with investment and advisory businesses. “Which is one of the reasons why there is interest in this space and why people want to make an allocation in this space.”
For more information on the cryptocurrency market, visit the Bitcoin category.