Bitcoin (BTC) Price Dives 12%, Sentiment Sours
Monday, Bitcoin (BTC) plunged more than 12%, extending declines in recent weeks in a broad-based selloff in digital currencies as sentiment sours.
Several factors have accelerated the downturn, analysts said, including increased US regulatory scrutiny and a delay to January 2019 of the widely-anticipated launch of Bitcoin futures by Bakkt, Intercontinental Exchange’s crypto platform.
These factors coupled with soft network fundamentals and reports of falling adoption of crypto as a tool for services have led to strong selling pressure against a lack of buying resistance to a point of capitulation.
Bitcoin fell to as low as $3,519.94 on the Bitstamp platform, after earlier falling to a 14-month trough of $3,462,57, and was last down 12.6%. It has lost 74% of its value so far this year, after hitting nearly $20,000 in December last year.
Currently, Bitcoin is trading at: 3,871.13-133.02, or -3.3221%, as of 7:48 GMT, the market is open
The Alt-coins also fell sharply
Ethereum’s ether down 7 percent at $106.69 and Ripple’s XRP falling 5.6 percent to 34 U.S. cents.
Cryptocurrency market capitalization plummeted to $122.3 billion on Monday, down 85 percent from its peak of nearly $800 billion hit in early January this year.
Mainstream investors have stayed clear of Bitcoin, with concerns over scant regulatory oversight and undeveloped market infrastructure compounded by frequent swings in price.
At the same time, the sharp price falls are seen by the Bitcoin Bulls as an opportunity to get into viable cryptocurrency projects at a discounted price.
“This opportunity doesn’t come often. If you missed out in 2014, 2015, 2016 and 2017, now’s the time,” wrote cryptocurrency analyst Joseph Young in a Tweet, referring to the opportunity for investors to buy Bitcoin at $3,000 and Ether at $100.
Should the CME BTCZ8, -4.34% contract trade toward $3,200 it would be at risk of hitting a 20% hard limit, which, if reached, is a level the contract cannot trade below for the remainder of the session.
Stephen Innes, the head of trading for the Asia Pacific region at Fx (foreign exchange) trading giant Oanda, has said that the plunge in the value of Bitcoin and crypto will lead to a surge in the price of Gold.
We will see…