Bitcoin falls to four-month low amid liquidation fears, Ethereum loses 9%
By ForGeeks Bitcoin fell to a four-month low on Friday, breaking through technical support levels. Traders were expecting sales of long-neglected tokens from the bankrupt Japanese exchange and further selling by spooked leveraged players.
Bitcoin fell to a new low on Friday, as traders were waiting for the long-neglected token to sell off from the bankrupt Japanese exchange and further selling by spooked leveraged players.
The price of the world’s largest cryptocurrency fell more than 8 percent to $53,523, below support near $55,000 and the lowest since late February. Bitcoin has already lost about 12% this week, despite gains in many risk assets such as the Nasdaq.
Bitcoin has already lost about 12% despite the rise in many risk assets such as the Nasdaq.
Efir fell 9% to $2,841, hitting a more than two-month low.
According to media reports, Mt. Gox, the world’s leading cryptocurrency exchange before its collapse a decade ago, may start returning bitcoins to lenders, who are expected to sell the tokens as they were worth only a few hundred dollars in 2014.
According to media reports, Mt. Gox, the world’s leading cryptocurrency exchange before its collapse a decade ago, may start returning bitcoins to lenders, who are expected to sell the tokens as they were worth only a few hundred dollars.
«The selling pressure is still due to creditor sales from the bankrupt Mt Gox exchange»” said Tony Sycamore, a market analyst at IG. «However, the acceleration of the decline suggests the market is trying to get ahead of lender flows.»
An acceleration of the decline suggests the market is trying to get ahead of lender flows.
Analysts are also pointing to concerns about the possible replacement of Joe Biden as Democratic nominee with a less pro-cryptocurrency candidate after a poor debate performance with Donald Trump.
Analysts are also pointing to concerns about the possible replacement of Joe Biden as Democratic nominee with a less pro-cryptocurrency candidate after a poor debate performance with Donald Trump.
Bitcoin had a successful start to the year after the launch of exchange-traded funds in the US, which lifted it to a record $73,803.25 in mid-March. Since then, however, it has struggled.
Since then.
«With an asset that has been in a range for some time and recently at the bottom of that range, there are a lot of margin positions»” said Justin D’Anathan of digital market maker Keyrock. «When prices fall, such positions are forced to sell, which creates a cascading effect, pushing prices lower than they would have been in a less leveraged market.»
Anethan said the market’s market maker is not as leveraged as it could be.
