By the end of September, the Bitcoin exchange rate showed the maximum drop over the past 20 months. Now the electronic coin is trading at around $ 8.4 thousand. However, this level remains quite low relative to summer figures of $ 10-12 thousand.
One of the factors in the failure of Bitcoin, market experts call the weak start of the Bakkt platform, developed by the Intercontinental Exchange (owner of the New York Stock Exchange). The developers of the cryptocurrency platform intended to trade bitcoin futures. The Bakkt official blog reported that the launch of the platform was approved by the U.S. Commodity Exchange Commission.
Analyst Alex Kruger on his Twitter said that on the day the crypto platform was opened (September 23), the futures trading volume was only 71 bitcoins and turned out to be lower than investors' expectations. As a result, the service was not able to attract significant investments at the first stage of its existence.
“Now, bitcoin, as well as cryptocurrencies in general, is under great pressure. Many world regulators have thought about controlling the turnover of virtual currency, the fight against its anonymity, ”said Andrei Khokhrin, General Director of Ivolga Capital Investment Company, RT.
The expert cited the example of China's state policy to reduce mining - cryptocurrency mining.
According to the Coindesk portal, the Chinese government has begun the liquidation of illegal Bitcoin mining enterprises in the Inner Mongolia Autonomous Region. These actions are only part of the Chinese authorities’s proposed plan in April to completely eradicate digital currency production in the country.
Earlier, Reuters reported that the National Development and Reform Commission of China included mining electronic currencies in the list of industries that should be banned.
Thus, the restrictive actions of the Chinese authorities have caused a decrease in hashrate, i.e. the total volume of cryptocurrency mining in the world. Andrei Khokhrin added that against this background, the volume of bitcoin mining fell immediately by 30%.
Experts also note the influence of the geopolitical situation on the digital currency rate. Now one of the risk factors for the cryptocurrency market is the US and China trade war.
In a conversation with RT, Gaydar Hasanov, an expert at the International Financial Center, admitted that Bitcoin has begun to decline due to signs of a ceasefire in the trade confrontation between Beijing and Washington.
“A decentralized cryptocurrency - Bitcoin - broke into the defensive asset market. The attractiveness of this asset is due to the fact that it has a nature different from the established financial system and is outside the range of regulators, ”said Gaidar Hasanov.
It is curious that not so long ago the global dominance of cryptocurrencies was predicted in the future. For example, Mark Carney, Bank of England Governor, announced the possibility of replacing the US dollar with digital currencies. About this newspaper The Guardian.
However, while analysts predict bitcoin in the near future only unstable price dynamics. Gaidar Hasanov believes that the technical factor of the September depreciation was the impulse breakthrough of cryptocurrency sellers, which led the digital coin to $ 8 thousand.
“In order to restore growth, the price of bitcoin will have to exceed the resistance levels that formed within $ 8.6 thousand. If the strength of buyers weakens, we should expect consolidation near $ 8 thousand for bitcoin in the near future,” Hasanov predicts.
In a conversation with RT, Forex Optimum lead analyst Ivan Kapustyansky noted that now the movement of the digital coin rate can be predicted only with the help of technical analysis. It's all about the actions of large players, who are now the main drivers of the growth or fall of cryptocurrency.
“The launch of the Bitkt futures on the Bakkt platform is unlikely to change the situation and provoke a stir in the cryptocurrency market. Once we have already gone through this - after the launch of futures on the CME exchange. After some time, it became clear that demand was minimal, and trading volumes were very low. Therefore, as part of the technical analysis, the next goal of the fall of Bitcoin is $ 7.5 thousand, ”said Ivan Kapustyansky.