Bitcoin has fallen below $US86,000 for the first time in two weeks, signalling weakening investor sentiment as the largest cryptocurrency drifts further into bear market territory. Analysts note that any upward price movement has been met with selling pressure from investors who purchased Bitcoin near its all-time high in early October.
Shortly after midday in New York on Monday, Bitcoin dipped below $US85,400. At 3.20pm New York time, it was down 3.4 per cent to $US85,676 on bitstamp.net. The cryptocurrency has now tumbled nearly 30 per cent from its record high of over $US126,000.
Bohan Jiang, senior derivatives trader at FalconX, noted the choppy trading range between $US85,000 and $US94,000, along with a continued lack of interest and low trading volumes across crypto markets. Bitcoin’s recent decline mirrors that of other risk assets but, unlike in the past, it has failed to rebound when those assets recovered.
The slide, according to analysts, highlights a market squeezed by weak liquidity and diminishing risk appetite. The Federal Reserve’s recent rate cut last week failed to revive momentum in digital assets, further contributing to Bitcoin’s decline.
