Bitcoin prices suffered some weakness today, dropping to their lowest since mid-October, as market observers cited several factors as potentially triggering these declines. The world’s leading cryptocurrency depreciated to as low as $55,460.96 today, according to CoinMarketCap. In addition, bitcoin was down close to 20% from the all-time high of nearly $69,000 it reached earlier this month.
Several factors for bitcoin’s recent bearish run.
When explaining the digital currency’s latest downward movement, analysts pointed to numerous variables as possibly fueling these losses. “I don’t think there’s any single catalyst that’s pushing Bitcoin prices lower this week,” said John Iadeluca, Founder & CEO of multi-strategy fund Banz Capital, told Forbes. “There’s been a movement of Bitcoin from extremely old wallets that has spurred rumors. In my opinion, though, Bitcoin’s price decline this week is a culmination of rising selling pressure, end of year profit-taking, as well as speculation,” he stated. Multiple analysts also spoke to the impact that the ongoing Mt. Gox situation could have had on the price of bitcoin.
The entire crypto market plunges.
The entire market cap of crypto took a major blow last week. Earlier, the Indian government’s proposal to ban private cryptocurrencies in India with certain exceptions led to massive amounts of panic selling on Tuesday night, leading to the crash of India’s biggest crypto exchange, WazirX. Leading cryptocurrencies, bitcoin, and ethereum both fell significantly. At the time of writing, Ethereum is changing hands at $4,273.12, and bitcoin is trading at $56,500. The original cryptocurrency bitcoin has more than doubled this year, while Ether is up about sixfold. Both scaled records this month amid a fervor for cryptocurrencies driven by speculative demand and controversial arguments that they can hedge inflation risks.