The Bitcoin price (BTC/USD) has decreased by around $1,000 in just 24 hours, amid a strong corrective trend observed across the wider digital currency market.
The digital currency had a positive start to yesterday’s session, with its price rising to as high as $8,320.82, which was its highest level since July 25. However, the Bitcoin rally stalled in subsequent trading, as the coin’s price pulled back to sub-$8,000 levels. In the final hours of the session, BTC hit an intraday low of $7,729.61 and eventually finished the day at $7,884.91, down from its opening price $8,194.50.
Bitcoin experienced a much steeper drop during the opening hours of today’s trading, with its price tumbling to a one-week low of $7,174.93. While the coin has seemingly managed to weather the storm, but it is still trading deep in the negative territory. At the time of writing, the Bitcoin price was hovering around the $7,300 level, according to data from digital currency tracker Coinmarketcap.
Bitcoin’s drop is in line with a larger downtrend affecting the crypto market. Having amassed big gains in the past few days, most digital currencies are now experiencing significant downward corrections. Major altcoins, such as XRP, Bitcoin Cash (BCH), Litecoin (LTC) and Stellar Lumens (XLM) have seen double-digit percentage drops over the past 24 hours.
According to Jehan Chu, co-founder of Kenetic Capital, the drop “was likely caused by a combination of profit-taking and also algorithmic trading compounding the swift fall”.
“We can expect these types of steep rises and drops to continue for some time until institutional investors grow market volume,” Chu said, as quoted by CNBC. “The key takeaway from the past few weeks is that with each of these surges, the overall interest and investment continues to expand around a growing core of real blockchain use and adoption.”
In today’s trading, the Bitcoin price stood at $7,332.93, as of 10:33 BST. The digital coin has lost 8.3% of its value in the past 24 hours. The coin’s total market capitalisation currently stands at $129.8 billion, which represents 56.3% of the combined value of all digital coins.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.
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