The decline in Bitcoin's value continues for a third week, giving us the feeling that the cryptocurrency finally knows Black Friday .
The world's most traded cryptocurrency fell as much as 8.5%, dragging a host of peers like Ether, Litecoin and XRP. For the first time since April, Bitcoin fell below its 200-day moving average without a rebound, a signal that traders are viewing the breach as a sign of weakness rather than a buying opportunity.
“There was a general apathy in the market and low sentiment,” said Matti Greenspan, a former market analyst at eToro in Tel Aviv. “There was excitement when Xi Jinping said China needs to embrace blockchain, but that has faded and the market is back to levels it was before the Chinese president’s comments in late October.”
Technicians have played a big role in the spread of virtual token trading because they lack the kind of fundamentals that can be analyzed with traditional securities. Many investors say the tokens have little intrinsic value beyond anonymity, some seeking illicit financial transactions.
It is worth noting that Bitcoin was 6.5% lower at $7,108 at 12:30 p.m. in London.
The coming days will reveal whether one of the most powerful, if not the most powerful, cryptocurrency being driven towards extinction.
