10 Oct 2019 #Bitcoin
Bitcoin has been performing negatively over the last few weeks as the cryptocurrency entered a bearish run. The bearish run continued this weekend and Bitcoin saw its prices fall below the $8,000 mark. This price tumble has been noted on several of the major crypto exchanges such as Coinbase and Bitfinex, occurring about six times in ten days.
While money exchanges reflected similar Bitcoin prices, CoinMarketCap shows a slightly different trade price. The mean price shown by CoinMarketCap is $100 more than that of all the major exchanges. It is not unusual for CoinMarketCap to reflect a different price, but this particular case has occurred at a significant time in the crypto trading sector.
There are signs that Bitcoin trading is in Hong Kong is attracting several traders, and that the crypto asset is being sold at a premium in the region. There is also an increase in trading volumes in Hong Kong, and this may be one of the reasons why CoinMarketCap is showing a mean price that’s higher than all the other major exchanges. On a weekly scale, the trade volumes have surpassed their all-time high of $12 million as the leading cryptocurrency’s trade peaks.
Although the numbers surrounding the Bitcoin trade in Hong Kong are positive, the cryptocurrency remains on a bearish run that started a few weeks ago. During the first half of the year, Bitcoin was on a bullish run that saw its price rise to almost $15,000. The crypto asset has now lost close to 50% of its yearly high, and it seems to be continuing on its downward trend. Bitcoin’s performance affects how other cryptocurrencies act on the markets and its bearish run has led to general negative performances across the market.
The crypto market is suffering from high levels of selling pressure, which has been mainly influenced by the lack of mass adoption for the asset class. During its bull run, Bitcoin was viewed as a safe haven asset and several investors turned to it as money markets performed negatively. This investor interest seems to have fallen and this has sent the crypto’s price downwards.
Other cryptocurrencies, such as Ethereum, are also facing high selling pressure for similar reasons. In the case of Ethereum, there is also the matter of ICO platforms that hold high amounts of digital assets and are now selling it off, creating general selling pressure for the cryptocurrency.
The underwhelming performance of Bakkt during its first week has also led to the fall of Bitcoin’s price. Analysts predicted that Bakkt would lead to the entrance of institutional investors in the Bitcoin market, but this has not been the case. In its first week, Bakkt experienced a trading volume of $5.8 million, which is far below the figures that were expected. This showed that there is little institutional interest in cryptocurrencies at the moment, and it has had a negative effect on the price of Bitcoin.
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