Bitcoin prices traded firmly lower Monday, after the digital currency over the weekend retreated below $7,000.
A single bitcoin
last changed hands at $6,922.39, down 1.6% since Sunday 5 p.m. Eastern Time on the Kraken exchange. Since Friday’s high, the No. 1 digital currency has lost $10 billion in value, according to data from CoinMarketCap.
The recent downtrend comes despite recent bullish news that should support optimism in the digital asset.
On Friday, the Intercontinental Exchange, the parent company of the New York Stock Exchange, said it plans to launch a new company that enables “consumers and institutions to buy, sell, store and spend digital assets on a seamless global network,”—a seemingly a positive step for the industry.
As to where the selling is coming from, one U.K. analyst thinks he has the answer. “Despite a widely accepted opinion that the main contributors of the crypto market decrease are the bears amongst the institutional investors, currently it is very likely that it is all about the miners,” wrote Alexander Kuptsikevich, analyst at research firm FxPro. “As the profitability of mining has been reduced by 90% since January 2018, they have disposed [sold] of the mined bitcoins.”
In an interview over the weekend, Jamie Dimon, the chief executive of JPMorgan Chase & Co.
said he had no interest in bitcoin adding that cryptocurrencies are a scam, according to a Bloomberg article.
Dimon has long been a crypto-skeptic. In 2014, he said that bitcoin is a terrible store of value and then in Sept. 2017, Dimon said: ‘It’s worse than tulip bulbs. It won’t end well. Someone is going to get killed.”
Dimon’s comments were echoed by longtime bitcoin cynic Nouriel Roubini.
Jamie Dimon reiterated comments made last year on Bitcoin, calling cryptocurrencies a “scam” and saying he had “no interest” in the world’s largest digital currency. He suggested governments may move to shut down the crypto-currencies. https://t.co/DbjFs2i3jZ
— Nouriel Roubini (@Nouriel) August 6, 2018
Technically, the outlook for bitcoin remains bleak. After failing at its 200-day moving average, a closely observed momentum indicator, bitcoin has since slumped below its 100-day moving average and is trading precariously close to its 50-day.
After rising more than 30% in the last two weeks of July, bitcoin is on track for an eighth losing session of the past nine.
Bitcoin futures have begun the week on the back foot. The Cboe Global Markets Inc. August contract
finished Monday down 6.4% at $6,920 and the CME Group Inc.’s August contract
closed the day down 6.2% at $6,920.
Altcoins, or coins which are alternative to bitcoin, are well off Friday’s closing levels, and have begun the week trading lower too. Ether
is down 1.7% to $403.44, Bitcoin Cash
is trading down 3.1%, at $689.60, Litecoin
is down 1.1% at $73.64 and Ripple’s XRP
is trading 3.5% lower at 42 cents.
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