Bitcoin continues to crash, drops below $6,600.

The price of bitcoin continues on a downward spiral. After China announced a crackdown on cryptocurrency-related businesses in the country, the price of the leading cryptocurrency slumped to a six month low.

ADVERTISEMENT

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.

ADVERTISEMENT
Avatar
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

Leave a reply

Please enter your comment!
Please enter your name here