The value of the most popular cryptocurrency Bitcoin looked back at under $30,000 after four weeks. While June was a momentary affair, this time it may be opening the way for bigger declines.
The new week began for Bitcoin in a similar vein to the one that had unfolded all week before. The price of the cryptocurrency fluctuated around the $31,000 mark. It was only on Tuesday morning (Central European Summer Time) that Bitcoin plummeted to just above $29.5,000. And around it, its value oscillated in the hours that would continue.
According to analysts, the immediate cause of the price drop can be seen as the chinese authorities’ ban on financial institutions securing payment transactions that are served in cryptocurrencies. “I expect a strong drop to $22,000,” Patrick Heusser, head of Crypto Finance AG Coindesk.com told the website. According to Edward Moya, an analyst at Oanda, Bitcoin could fork as much as $20,000. “Here it could attract institutional investors who have been waiting for an opportunity,” he also told Coindesk.com.
Other cryptocurrencies, the relatively least losing Ethereum, also reacted to bitcoin’s decline, at only about 2.5 percent.