Reasons for lowering the Bitcoin price below the $ 8500 threshold

During this week, the price of Bitcoin fell almost 10% and reached the minimum value of February at $ 8577 according to CoinMarketCap. In total, the BTC has lost almost $ 2000 in the last 30 days.

According to data analytics provider Skew, the market recorded approximately $ 190 million in long and short bitcoin (BTC) positions.

Starting at 2:00 PM UTC on February 26, the BTC price began to fall below $ 9,000. An hour later, BitMEX recorded the largest volume of liquidations since the beginning of the new year, which amounted to more than $ 100 million.

Reasons to lower the price of Bitcoin

The fact that the SEC rejected the Wilshire Phoenix ETF proposal has left a significant number of investors demoralized. The US regulator rejected the ETF proposal on the grounds that Wilshire Phoenix did not prove that Bitcoin is resistant to market manipulation.

Against the global strains of coronavirus, traditional markets are also in crisis. Major indices, such as the S&P 500 and the Dow Jones Industrial, have fallen more than 7% in the past week.

Meanwhile, gold-based futures continue to grow, with an advance of 0.52%.

The latest price evolution of the BTC seems to contradict the theory that cryptocurrencies can act as refuge assets under conditions of economic uncertainty.

“Bitcoin has not been correlated with other asset classes. If shares fall, that doesn’t mean Bitcoin needs to grow. If gold prices go up, that doesn’t mean that Bitcoin will grow with it every time, ”

noted the Coinist analyst, Luke Martin.

For several weeks, crypto analysts have stressed the importance of keeping the Bitcoin price above $ 9,000. Another important level was the MA for the last 200 days of $ 8,800.

Both values ​​were exceeded during the day yesterday, and currently the “bulls” are struggling to maintain the support level of $ 8,500. For now, the BTC price has risen to over $ 8,700.

Altcoins also suffered, and many of the top 20 cryptocurrencies suffered double-digit losses. Overall, the total valuation of the crypto market fell to $ 248 billion.

If you know any other reasons for lowering the price of Bitcoin, the comment box is yours.