After remaining fairly stable at around $ 10,000 for several months, the price of Bitcoin plummeted by approximately 15% late Tuesday, reaching a minimum of $ 8,165 in Coinbase.
Other important cryptocurrencies
Like Ethereum and XRP, they followed suit, recording equally drastic losses before recovering slightly. The prices at the time of writing are 8,398.1 dollars for Bitcoin, 165.9 dollars for Ethereum and 0.24 dollars for XRP according to CoinMarketCap.
Strong losses and gains in the world of cryptocurrencies are not uncommon, but this event is interesting for several reasons. In addition to breaking a period of relative stability and bringing the prices of the main cryptocurrencies to levels never seen in June, it occurs after some interesting developments for the cryptocurrency space.
The most important
It's Monday's launch of a cryptocurrency futures product by Bakkt, a cryptocurrency market backed by Intercontinental Exchange, Microsoft, Starbucks and Boston Consulting Group. The long-awaited launch has seen lukewarm interest from investors, with a volume of only 71 bitcoins.
“The disappointing opening of BAKKT indicates to the encryption community that institutions are less prepared to invest in BTC on a scale than previously assumed, which means that the price was probably too high and should have been corrected. What we have just seen is short sellers and momentum operators are getting worse to make things worse, and now we are back in support ”, Alex Mashinsky, CEO of the deposit and cryptography company Celsius Network, said in a statement sent via email.
It is also worth noting
That the launch of the CME bitcoin futures product in December 2017 marked approximately the end of a tremendously bullish period for cryptocurrencies and the beginning of an exhausting bear market that lasted a year.
Earlier this month, VanEck and SolidX withdrew their proposal for a publicly traded fund (ETF) from Bitcoin. Numerous similar proposals have been rejected by the US Securities and Exchange Commission. UU., Which has so far discovered that cryptocurrency markets are not mature enough to approve an ETF product.
The question is whether we are still in a bull market
Or this latest price drop has completely reversed the course. The price of Bitcoin experienced a fairly constant period of increase since January, increasing from approximately $ 3,500 to more than $ 13,300 in July, and most major cryptocurrencies followed a similar trajectory.
Now, however, prices have been in decline for more than two months, and the case of a bull market is weakening day by day.