Later last week, the price of bitcoin slumped down to a six month low when it traded below $7,000. The price of the leading cryptocurrency failed to show any recovery as it continued to drop. At the time of writing, bitcoin is changing hands at just below $6,600.
Analysts eye $6,000 as the next target for bitcoin.
Several analysts have predicted that the price of bitcoin might fall to $6,000 before gaining any positive momentum. It is likely that if bitcoin fails to hold support at $6,000, the price will continue to follow a downtrend. In the past week, the market cap of bitcoin has come down to $120 billion, with a loss of $33 billion.
Is China to blame for this?
The crash in the price of the leading cryptocurrency coincided with the People’s Bank of China’s announcement to crack down on cryptocurrency-related businesses. Earlier, Chinese President endorsed blockchain technology, which resulted in a positive rally for the price of bitcoin. But the central bank of China has warned investors not to confuse blockchain technology with virtual currencies.
The prominent economist and crypto analyst/trader Alex Krüger tweeted that bitcoin is not affected by macro variables.
Remember how the Fed "printing money" was supposed to make bitcoin prices explode higher?
Quantitative easing is rocket fuel!
— Alex Krüger (@krugermacro) November 24, 2019