Bitcoin Reels From Its Worst Single-Day Loss, Falls Below $10K

FILE PHOTO: Exchange rates and logos of Bitcoin (BTH), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) are seen on the display of a cryptocurrency ATM of blockchain payment service provider Vaerdex in Zurich, Switzerland, May 29, 2019.
(Photo: REUTERS/Arnd Wiegmann/File Photo)

Bitcoin (BTC) continues to take a beating and floundered from its temporary support of $10,000 after the crypto endured a week of steady losses, unleashing a flurry of sell-offs late Thursday.

The cryptocurrency, following this week's series of notable declines, has fluctuated between $9,910 and $10,210. It fell to this range after dropping to as low as $9,650 early Thursday, falling around 21 percent within a 7-day span, figures by CoinDesk data showed.

Bearish market sentiment spread around key trading floors late Thursday as global stock markets dived across the board, with the S&P 500 losing nearly 3 percent, while the FTSE-100 in London also fell about 1.3 percent.

Bitcoin began its descent in the red zone as early as Wednesday as international markets reacted to the latest news surrounding the ongoing economic tussle between Washington and Beijing, not to mention the ripples caused by Brexit and Argentina's crumbling currency.

The mounting pessimism fanned by the bears on Wall Street with regards bitcoin's subdued performance of late seems to dispel the perception that it acts as a safe-haven asset during moments of economic doubt. But given its volatility -- and its natural tendency to break out and make surprise rallies -- somehow keeps investors' hopes alive.

According to Jeff Dorman, a chief investment officer of asset management firm Arca, given bitcoin's recent decline, pointed out that the electronic money was inclined to lose its momentum when the Chinese currency stabilized and US President Donald Trump deferred his taxes versus China for the time being.

When simplifying the relative stability in the prices of crypto that traders have to deal with lately, market observers claimed that investors were reacting to oversold conditions, acquiring virtual money and helping to cushion bearish factors.

Many market experts see Bitcoin going on a bull run, while others predict a badly needed correction until the final leg of the year will be in place. However, some still say that bitcoin's latest misery (at the consistent $10K level) looks very similar to that of 2017 when the digital asset bled just to even hit the $1,000 mark.

Ultimately, the most talked-about virtual asset breached the $1,000 boundary and that was when its price tore through resistance and sparked the greatest bull run since its inception. Bitcoin's meteoric ascent has since then been widely covered by major news outfits around the world and became a popular byword.

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