The Bitcoin price fell to $6,558.14 on Monday before rebounding on Tuesday. Now at its lowest level since May, Bitcoin has lost $3,000 in value one month after China cracked down on businesses involved in cryptocurrency operations. Bitcoin is currently trading at $7,222.12.
Bitcoin increased in price to $10,000 last month after Chinese President Xi Jinping spoke highly of blockchain technology, though there were no indications he included cryptocurrencies in that sentiment.
“This was one of the worst weeks in the history of digital assets,” Jeff Dorman, chief investment officer of Arca, told CNBC. “The market is clearly in contraction, with no new money coming in to soak up the supply.”
Since falling to $3,122 in 2018, Bitcoin’s price has doubled since the start of 2019. Facebook announced its plan for Libra this year, as enterprise continued to lend credibility to the notion of a distributed ledger.
NYU economist Nouriel Roubini took to Twitter to highlight the declining prices across cryptocurrencies.
Crypto-Carnage: BTC down 65% from peak; other top 10 crypto-currencies down 80% from peak. 1000s of other shitcoins down 95% to 99% from peak. Total crypto-apocalypse!
— Nouriel Roubini (@Nouriel) November 26, 2019
Simon Peters, a bitcoin specialist at the online trading platform eToro, said Bitcoin could continue to decrease if it crosses what he terms a ‘Death Cross’,” which happens when the 50-day moving average goes below the 200-day moving average. If this happens, it is an indication Bitcoin may continue to decline in price.
Not only has Bitcoin declined in price in recent months, with Ethereum and Ripple declining 16 percent and 11 percent respectively.
Bitcoin Cash, the Roger Ver-backed cryptocurrency that claims to be fulfilling the founder of Bitcoin Satoshi Nakamoto’s original vision for the currency, fell 13 percent.
With that said, social media sentiment for Bitcoin remains high, as highlighted by this tweet by Mati Greenspan, founder of Quantum Economics:
— Mati Greenspan (tweets are not trading advice) (@MatiGreenspan) November 26, 2019
Dorman referenced Bitcoin’s long history of increasing in price after strong comeback from big sell-offs, with the cryptocurrency gaining 70% in the four months after a 16% loss in 2016. After a 22% sell-off in 2015, Bitcoin increased 89%. It remains nowhere near its all-time high of $20,000 in December 2017.