Bitcoin price has been updated as the lowest level in the month of December. At the last time when it was trading at such a low rate, then the daily bottom was at $6,638. This price acted as the next restricted line. If the oldest crypto has broken down below it, this might not be fruitful for the investors. This percentage was also mentioned in the Crypto news feed that has been researched by many people around the globe.
What Influences Bitcoin price?
Bitcoin price is declined by the reasons that are explained by the technical analysis. The market is about to report by Chainalysis. It concluded that the perpetrators of the China-based Ponzi scheme are dumping their crypto holdings to cash out. It was reported on the true extent of Plustoken that Singapore based exchange huobi was processed almost half of the Ponzi withdrawals. Plustoken has been the greatest Ponzi scheme in the crypto industry ever. This $3.1 billion scam has acted as a crypto wallet. It was an investment opportunity that rendered high yield monthly returns. This was in exchange for deposits in BTC, ETH, and other coins. This scheme has been very popular in Asia. Also, there is a varied number of other factors that affect the bitcoin price drop. They are as follows:
- The supply of Bitcoin and market demand for it defines the price up to and drop rates consequently. When the rate of Bitcoin drops then it’s market value gets decreased and when the rate goes up, then it’s market value increases.
- The number of competing cryptocurrencies are going to define the market value of bitcoin. When multiple cryptocurrencies come in the market then it affects the demand of the respective cryptocurrencies.
- Regulations governing its sale are some of the other factors that affect the price rate of Bitcoin. If there are more restrictions during the purchase of any item then the sale gets decreased even more.
- The exchanges it trades on and internal governance. The cost of producing a bitcoin through the mining process is the other reason behind the price of bitcoin.
- Price sensitivity is another factor that affects customer interest and more people getting associated with it. When the price of any particular cryptocurrency increases then its directly affects its market value.
- The demand for the Currency is another factor that influences the pricing and market value if it.
Blockchain Research Chainalysis
Bitcoin price went down below the psychological level of $7000 late on Monday. Blockchain researcher Chainalysis said that Plustoken scammers are selling coins to cash out. Around this time the cryptocurrency fell to 3.11 percent in the last 24 hours. Also, it was touching the percentage of 6,905. Eventually, the crypto market has lost about $7 billion. It occurred from a daily peak of over $195 billion.
Bitcoin Dragging Down Crypto Market
Altcoins tumbled as well, even posting much greater declines. Ethereum, which is heavily involved in the Plustoken scandal, dropped over 7% to $130. Litecoin and EOS have also lost over 8%. Altcoins tumbled even after posting much more declines. Ethereum is heavily involved in the Plustoken scandal. It dropped from 7% to $130.
Conclusion- Bitcoin price has been trading above $7,100. Litecoin and EOS have overall lost above 7% in this price battle. These prices keep on fluctuating as per the desired requirements of the market. Moreover, market prices are another factor that influences the price of Bitcoin.