Bitcoin’s (BTC) price fell as low as $74,000 U.S. over the weekend as investors continue to abandon the cryptocurrency trade and head for safe haven assets such as value stocks.
In early trading on Feb. 2, Bitcoin was trading at $77,800 U.S. But analysts say it’s a bad sign that the largest cryptocurrency has dropped below the key support level of $80,000 U.S.
Those analysts note that there appears to be limited dip buying even as forced selling among leveraged investors continues at a brisk pace.
Crypto markets saw another wave of forced selling over the past 12 hours, with $510 million U.S. in leveraged positions wiped out.
There remains strong selling pressure in the crypto market as prices slide into thin liquidity, say analysts.
Ethereum (ETH), the second largest crypto, is selling off even more aggressively than Bitcoin, down nearly 10% in 24 hours.
The weekend downturn in crypto prices comes amid a big selloff in gold and silver as investors rotate capital into value and blue-chip stocks.
U.S. President Donald Trump’s nomination of Kevin Warsh to lead the U.S. Federal Reserve appears to have eased some concerns about the central bank’s independence, taking the wind out of gold and silver’s sails.
With BTC now trading near $75,000 U.S., it is not clear when the cryptocurrency will reach a bottom, warn many analysts.
Bitcoin has fallen 40% from an all-time high of $126,000 U.S. reached last October.
