It looks like the bubble doesn’t have that much until it bursts. This Thursday, Bitcoin dropped below $9,000, a level which analysts call critical. According to CNBC, this decline follows after reports about increased regulation India, but also a potential price manipulation at a major market exchange.
The same source mentions that in late morning trading, the world’s biggest cryptocurrency, in terms of market cap, was trading even at $8,810 on Coinbase, the leading United States-based marketplace. However, Bitcoin managed to regain some territory over the day, trading now at $9,116.69.
Did India trigger the price drop?
Today’s decline started after India’s minister of finance, Arun Jaitley, expressed his concerns about the increased regulation on cryptocurrencies in the country. Besides this, just one day ago, a report from The New York Times was claiming that several digital currency investors are seriously worried that the price of Bitcoin, as well as other virtual coins, has been highly influenced by cryptocurrency exchange Bitfines.
On Tuesday, Bloomberg also talked about this, revealing that Back in December, Bitfinexwas subpoenaed by the United States Commodity Futures and Trading Commission, as well as a mysterious company called Tether, believed to be run by the same executives.
When asked about this, representatives of both companies did not respond to the request.
“Concerns over tether are a minor contributing factor” to bitcoin’s decline,” said ri Paul, chief investment officer at cryptocurrency investment firm BlockTower Capital. “After the parabolic rally into mid-January, the market remains generally in corrective mode where minor bearish headlines are piling on to the fearful sentiment.”
Record after record is broken. In a negative way.
Back to Bitcoin’s current trading price, despite the short dip below $9,000 registered today, it still managed to hold close to the psychologically key level in midday trading.
This month, the coin fell below $10,000 three times, but still managed to recover. However, this Thursday’s price is the cryptocurrency’s lowest in just two months.
“Lots of news regarding regulation is causing the market to panic,” said Nick Kirk, quantitative developer and data scientist at Cypher Capital, a cyrptocurrency trading firm. And he is absolutely right with this statement!