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.