The Bitcoin price (BTC/USD) hasn’t been able to recover from the recent sell-off that sent shockwaves across the crypto sector.
The original cryptocurrency spent the Wednesday session trying to weather the storm after its plunge below $9,000 on Tuesday. The digital coin had a poor morning session, during which its price dropped to as low as $8,325.40, according to data from cryptocurrency tracker Coinmarketcap. This was Bitcoin’s lowest price level since June 14.
The coin’s performance somewhat improved in the afternoon, which allowed BTC to notch up a close above the $8,400 mark. BTC finished the session at $8,486.99, down from its opening price of $8,603.43.
Some analysts have suggested that Bitcoin’s sudden drop was in part driven by the lacklustre launch of Bakkt’s physically-backed Bitcoin futures.
“When the actual Bakkt launch showed disappointing volumes on the first day, it opened the hatch and the bottom fell out of the market,” Travis Kling, founder of Los Angeles-based crypto hedge fund Ikigai, said, as quoted by Bloomberg.
Jeff Dorman, chief investment officer of Los Angeles-based asset manager Arca, told the newswire that the crypto market was being driven by “short-term technical analysis”.
“[E]very low price that Bitcoin has bounced off of, and every high price that has been reached has proven to be resistance,” Dorman said. “Because crypto is still dominated by short-term focused traders, these telegraphed narratives often become self fulfilling prophecies”.
Bitcoin has continued to struggle in today’s trading, as it has been unable to recapture the $8,500 level. As of 11:27 BST, the Bitcoin price stood at $8,476.85, up 0.6% from the same time yesterday. The digital coin’s total market capitalisation currently stands at $152.2 billion, which represents 68.3% of the combined value of all digital currencies.
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