Bitcoin prices declined sharply overnight, losing more than 8% as momentum stalled.
The cryptocurrency fell to $9,904.60 around 9 a.m. EDT, down 8.5% from the previous intra-day high of $10,824.49, CoinDesk figures reveal.
The digital asset then extended these losses, reaching $9,864.14 around 12:00 p.m. EDT, additional CoinDesk data shows.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
These declines took place as the world’s most prominent digital currency “has had a difficult time maintaining momentum to stay above key levels in recent weeks,” said John Todaro, director of digital currency research for TradeBlock.
Todaro emphasized the key role played by investor sentiment, pointing toward this variable when explaining bitcoin’s recent price movements.
“Sentiment has drifted lower as a sustained push higher has been halted, while alt-coin sentiment has been low for several weeks now as alt prices continue to decline,” he stated.
His claim is supported by the latest figures from alternative.me‘s Fear & Greed Index, which displayed a reading of 11 today, pointing to extreme fear. The index’s values range between zero (for extreme fear) and 100 (for extreme greed).
Todaro also emphasized the latest news in the digital currency space, stating that these developments could be placing downward pressure on the digital currency markets.
“Ethereum founder Vitalik Buterin commented how rising transactions costs could slow adoption of ether, US regulators hit companies in the space including ICOrating, and Facebook’s stablecoin project is facing probes in Europe,” said Todaro.
While Todaro focused on factors like news developments and sentiment, some market observers singled out technical factors as playing a key role in driving bitcoin prices lower.
Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, spoke to this.
“This is a technical pull back due to Bitcoin’s failure to cross $11,000 amidst low trading volumes,” he said regarding bitcoin’s recent drop.
In spite of the recent challenges that bitcoin markets have encountered, the digital currency’s outlook is…
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