The leading cryptocurrency is not having a good time. On Thursday, the Bitcoin value dropped below $8,000 and reached $7,982, making it for the first time in a month. Currently, Bitcoin is residing on $7,965 at the time of writing. Bitcoin isn’t facing alone this catastrophe; other cryptocurrencies such as Ethereum, XRP, Litecoin, and so on along with it. This is the seventh consecutive day in a row that Bitcoin has witnessing a decline.
Chief Investment Officer of Los Angeles-based asset manager Arca Jeff Dorman expressed that,
“Bitcoin price action is a continuation of themes that have developed since this summer. Volumes are low, no new money is coming into the ecosystem, and stocks/bonds/gold are all up double-digits year-to-date, which makes the non-crypto world lose focus on this emerging asset class.”
There are many speculations surfacing, but the actual reason has not been discovered. One reason which seems to be the cause of Bitcoin decline is the current position of digital gold. As small level miners are giving up and bid farewell to space of cryptocurrency, which subsequently creates a gap to fill by investors.
Bitcoin had seen a significant surge after the statement of the Chinese president who backed the cryptocurrency. But now, according to Bloomberg, Chinese social-media network Weibo has banned crypto giants like Binance and Tron. This may cause investors to lose their confidence in leading cryptocurrency.
Bitcoin is trading at $7565.67 at the time of writing.
Featured image: Getty/Chesnot