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Reports: Bitcoin Fell Below $10K, But is Now Above $10K, But Could Fall to $8k Soon
Capital Markets, FinTech
Like something ripped straight from the headlines in The Onion, bitcoin has been on a whirlwind price correction, briefly falling below $10,000 on Wednesday for the first time since November, before recovering to hover just above that mark later in the day.
Overall, bitcoin is down ~50 percent from its all-time high, as CNBC reports. It has also dropped $30 billion over the last 24 hours.
“Focus has shifted to negative regulation with headlines out of South Korea, China, and even minor headlines from France and the U.S.,” Ari Paul, chief investment officer at cryptocurrency investment firm BlockTower Capital, said in an email. “These headlines are having an outsized effect because cryptocurrency as a whole was overbought and sentiment reached exuberant levels, setting the stage for the violent correction that we’re seeing.”
Bitcoin had hit a record-high near $19,800 in December, but days later suffered a major sell-off that led Coinbase to briefly suspend trading. As regulators begin cracking down on bitcoin, demand has begun to cool in South Korea and Japan, which had been dominating trading volume with cryptocurrencies.
And now, with “indicators still all in bearish territory,” CoinDesk is reporting that bitcoin could soon fall near $8,000. The coin was trading just below 11,000, as of this writing.
Photo: Getty iStock