Bitcoin Prices Continue on a Downward Trend
The coin dropped once more on Sunday
The volatile nature of virtual currencies may be put to test by the recent plunge in Bitcoin prices. The prices of Bitcoin have dropped suddenly since Sunday causing loses to investors.
According to Bitcoin Price Index (BPI), the prices of the virtual currency dropped from highs of $7,500 to lows of $6,700. The reports goes on to show that the prices dropped 12.5% on Sunday compared to the same time the previous day. According to analysts from different companies, the plunge of Bitcoin prices can be attributed to several factors.
Leading the many factors is the recent attack on Coinrail, a South Korean crypto exchange platform. Through a tweet, the platform confirmed rumors of a hack on the exchange which took place over the weekend. It is reported that hackers made away with 30% of traded coins on Sunday. The hack has been top on crypto news. Even so, it cannot be directly linked to the fall.
Other factors contributing to bitcoin price fall
Other than the hack, there are several other factors said to might have caused the drop in Bitcoin prices. According to Charles Hayter, CEO and co-founder of CryptoCompare, a digital currency data platform, the sudden decline can be attributed to the CFTC subpoena. The U.S. Commodity Futures Trading Commission (CFTC) issued four exchanges with summons to answer to price manipulation charges. According to Hayter, the issuance of the subpoena might have had a hand in the Bitcoin prices drop.
Additional senior analysts weighing in on the matter include Mati Greenspan and David Johnson. The two aired their views on how Bitcoin prices would fair going forward. David Johnson, CEO at Latium, a cryptocurrency tasking platform, and Matt Greenspan a senior analys at eTero give two scenarios. The general feeling is that the future of bitcoin could go either way. Johnson says that if it does pick a bearish trend, then the psychological level will set at $6000. The coin may trade below $5800 before finding stability. Similarly, Greenspan expresses that although whole numbers give a strong support base, $6000 has never been one. If it takes a bullish one however, it may soon be on the rise again. Having been hovering at $7000 in recent months, the coin could the break resistance level attaining the psychological $ 8000 level.
All said, Bitcoin is a virtual currency with an unpredictable nature. Its prices drop and rise without warning as evidenced in past years. Currently, Bitcoin is trading $6859 according to Bitcoin price index. It has been fluctuating between $6600 and $6900 since Sunday.