Over the past 48 hours, Bitcoin has collapsed to a two-month low and is currently trading below USD 7000.
The global cryptocurrency market has also fallen below $300 Billion since mid-April. The prima facie reason of this collapse is said to be the recent hack of Coinrail exchange, the South Korean cryptocurrency exchange, revealing lost figures of around $40 million valued in crypto.
Apart from this, the ongoing CFTC investigations might also have caused the sudden decline in the value of Bitcoin and hence, its performance.
No single reason can be attributed to its decline as it can be affected by a plethora of reasons surrounding the buzz. Geopolitical, fear factors and mainstream media might also be the reasons affecting BTC’s valuation. Bitcoin is the largest and the most popular cryptocurrency as per the market cap. It saw another decline in its value resulting in a two-month low of this crypto on Monday.
Once at a high of $19,000, BTC declined to $6,709 and then recovered to 6,764 USD. Bitcoin lost about 13% following the hack.
Not just Bitcoin, other cryptocurrencies too suffered a plunge in their valuation. Ethereum lost around 8% and Ripple also experienced a downtrend in the past 24 hours. The decline was due to the fear of investors over the safety of their crypto investments.
Before June 11, Bitcoin touched lowest on April 10 at USD 6,704 as per the data available. BTC has been earlier trading in the range of $7500. Over the past week, BTC gained short-term momentum and has tried to escape from the bearish structure where it is caught again now. Extreme pessimism followed after the Coinrail hack came into light.
With such news, it is becoming increasingly more cumbersome to predict the future of cryptocurrencies especially the future price of Bitcoin. Looking at the market movements, Bitcoin might have to face a bearish situation for next couple of days.
Bitcoin is a volatile digital currency and future trends cannot be predicted outrightly as the price changes drastically following any change in the conditions of the market. This does not mean that the cryptocurrency bandwagon is over as people are still active in the market.
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The post Bitcoin (BTC) Trading Below USD 7,000 appeared first on CoinFrenzy | Blockchain News in Shorts.