Bitcoin crashes below $7000: Why is Bitcoin going down? Will Bitcoin price continue to go down? (Bitcoin Price Today)


It seems like the downtrend in Bitcoin continues. Bitcoin has broken the $ 7000 mark. It went to as low as $ 6630. In the current downturn, it is fallen from $ 11,500 all the way up to $ 6600.

Downturn in cryptocurrencies:

The downturn is not just limited to Bitcoin. Most of the other cryptocurrencies are falling significantly. When you take into account Litecoin, Ethereum, Ripple, you will realize that almost all of these cryptocurrencies are consistently falling. None of the investors are coming forward to invest in cryptocurrencies. This is one of the main reasons why cryptocurrencies are falling consistently.

With the consistent selling and no buyers coming forward, the momentum is on the downside. This will mean that in the future as well, these cryptocurrencies will fall consistently.

Increasing regulations:

The Japanese authorities have begun regulating the cryptocurrency industry. As a result, the operations of cryptocurrency exchanges are affected.

Recently, 2 of the cryptocurrency exchanges in Japan closed down because they were not able to comply with the latest rules and regulations in Japan. This is leading to decreased trading volume in Japan. The problem is that with the decreased volumes, the downturn will become more and more severe. This is what most of the investors are fearing.

At present, it does not seem like that the downturn will end anytime soon. This is one of the main reasons why traders are also not venturing into cryptocurrency market. Also, the institutional money has been against Bitcoin as well as other cryptocurrencies from a long period of time. This has led to a complete lack of buying support in the cryptocurrency market. As a result, most of the cryptocurrencies are consistently decreasing as well.

The problem is that with the decrease in cryptocurrency prices, mining will not be viable as well. This will lead to a decrease in mining activity as well.

Currently, it seems like the cryptocurrency market is in a severe downturn. In the last couple of weeks, the total market cap cumulatively of all the cryptocurrencies has fallen by around $ 100 billion. This is actually a pretty drastic fall considering that the market cap now stands at around $ 250 billion. Just a few months back, it was around $ 500 billion. This is a significant fall from the peak. As a result, many of the investors are actually nervous about investing in cryptocurrencies at the present prices.

Bitcoin Drops From $7,900 to $6,600 as Cryptocurrency Market Takes a Beating

The valuation of the entire cryptocurrency market has declined to $253 billion, down $100 billion over the past week. The price of most major cryptocurrencies including bitcoin, Ethereum, Ripple, and Bitcoin Cash dropped by more than 13 percent throughout March 30.

Slump Continues
Over the past 24 hours, the price of bitcoin dropped from $7,900 to $6,600, recording a 12.6 percent decline in value. Ethereum, Ripple, and Bitcoin Cash all declined by more than 12 percent, as the market lost over $40 billion within a two-day span.

Both bitcoin and the cryptocurrency market have not seen these levels since early February, when the price of bitcoin dipped to $6,000. After reaching its bottom at $6,000, the price of bitcoin spiked to $12,000, reaching $14,000 in regions with substantial premiums, including South Korea and Hong Kong.

Although bitcoin has shown some resistance at the $6,600 mark, it has also demonstrated minimal signs of recovery. Volumes on most exchanges including Binance, Bitfinex, Bithumb, Bitflyer, and Upbit remain relatively low, but the volumes on futures markets are intensifying, as CCN previously reported.

Several analysts including Wall Street-based Fundstrat’s Tom Lee have stated that bitcoin is still on track to end the year at $20,000, especially if the market can initiate a mid-term recovery within the upcoming months.

Abra CEO Bill Barhydt stated that while the demand towards the cryptocurrency market has been non-existent from institutional investors and retailer traders in the west, that certainly has not been the case in Asia.

“There really is zero large-scale institutional money from the west in crypto right now. That is happening in Japan. Once a large sizable chunk of Western institutional money starts to come in — watch out,” said Barhydt.

Given the lack of volumes, it is likely that the cryptocurrency market could continue to fall in the next few days. However, if bitcoin fails to sustain its volumes and the price of the most dominant cryptocurrency in the market falls below the $6,000 mark, it could lead the market to another bear cycle.

Where Does the Market Go From Here?

Barhydt stated that hedge funds, institutional investors, and investment firms are still actively looking into the cryptocurrency market, and exploring ways to enter the market. He emphasized that hedge funds will likely see a window of opportunity to enter into the cryptocurrency market when the market stabilizes and extreme volatility of bitcoin and other major digital currencies subside.

“I talk to hedge funds, high net worth individuals, even commodity speculators. They look at the volatility in the crypto markets and they see it as a huge opportunity. Once that happens, all hell will break loose. Once the floodgates are opened, they’re opened.” / Source CCN

Bitcoin falls close to US$6,000 after EU rules against leveraged trading

Concerns grow that Asian regulators would mirror Brussels and cut leverage levels
Bitcoin traded down at US$6,617 on the first-day of the long Easter weekend on Friday – its lowest-level since February 6 when it broke below US$6,000, as new European Union (EU) rules aimed at reducing leveraged trades offered by brokers prompted a widespread sell-off on fears of similar measured being launched in Asia.

Earlier this week, the European Securities and Markets Authority (ESMA) issued a set of product intervention rules that will drastically cut leverage limits for cryptocurrencies to 2 times for retail investors, which are being offered by brokers through a derivative called contracts for differences (CFD).

Traders said that represents a drastic cut from what typically would be 15 times leverage being offered by major exchanges, such as those in Japan, and brokers.

That sparked what amounted to be a “spectre of deleveraging” that drove Friday’s sell-off. Such a “spectre” could continue to weigh on global bitcoin demand for at least the short term, they added.

“Leverage has been a big driver for bitcoin trading. US$6,000 is a key psychological level, and if we broke it (again) then bitcoin would be poised for a further downward side, which I wouldn’t be surprised might eventually hit US$2,500,” said Stephen Innes, head of Asia-Pacific trading for online currency trading platform Oanda.

Bitcoin recovered some lost ground after lunch on Friday as it traded back up to around US$7,082 by 17.53 HK time, the bitcoin (USD) price index quoted by Coindesk showed.

Innes said Japanese retail investors have been a key trading-volume driver globally, accounting for 40 per cent of the daily average.

“When you cut leverage from 15 times to 2 times, it means that anyone who had been trading at 15 times leverage, on US$10,000 capital who was able to buy US$150,000 worth of bitcoin on margin in his account, could now hold a position of US$20,000 worth of bitcoin,” said Innes.

That caused investors to rush to sell on Friday, as they attempted to cut their losses, now the new rules mean that highly-geared positions could soon be culled.

Online brokers such as eToro have also been offering leverage on bitcoin trading through CFDs. (Source:

David is passionate about learning cryptography, tech and the Internet. He has years of experience working at international investment projects. Growing interested in Blockchain and cryptocurrencies in late 2015, he joined Smartereum as an editor.


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