Digital currencies were in free fall Wednesday, with some major coins in
the red by more than 10%.
Bitcoin, the world’s biggest digital currency, fell through $8,000 late
Tuesday and the slide has not abated. Bitcoin tumbled to a multi week low of
$7,442.92. Bounces have been limited, with a single coin last worth $7,528.89,
down 7.1% from late Tuesday Eastern U.S. levels on the Kraken exchange.
The collapse in cryptocurrencies has seen the total value of all coins
fall to $326 billion, down some $50 billion in just 72 hours, according
to Coin market cap.
Bitcoin bull Tom Lee of Fund start Global Advisors is holding
firm, telling CNBC that institutional
investors are just waiting for clarification of regulation before dipping their
toes in the water.
Lee told CNBC that his price target for the No. 1 digital currency
remains at $25,000.
It’s just a trend, and the trend is lower
Bitcoin enthusiasts looking for the next support line might be better
off tracking current resistance levels, according to one analyst, who says we
are still in a trend, and it’s not higher.
“Last week’s $9k support has turned into this week’s $8k support. And
thus far it is giving every indication that $7k will become next week’s
support. I hope you see the trend here,” wrote Jani Ziedins in a blog post.
“It takes most bubbles between six and 24 months to finish bursting. If
bitcoin is like most bubbles, that means the worst is still ahead of us and we
should expect lower lows over the next few months.”
Altcoins, or digital currencies other than bitcoin, are showing hefty losses
Ether ETHUSD, -1.77% has lost 10.6% to
$586.00, Litecoin LTCUSD, -4.15% is down
8.2% at $119.10 and Ripple’s XRP coin XRPUSD, -5.35% is down 10%, last
trading at 59 cents.
Bitcoin Cash BCHUSD, -4.58% is the biggest
loser, currently down 12%, trading below $1,000 at $991.30. Bitcoin Cash
reached a low of $969.20 Wednesday, a fall of 15.8% on the day. At this rate
Bitcoin Cash, which had risen more than 100% in April, is on track for its
third consecutive weekly loss.
Futures finished the day well in the red. The Cboe June contract XBTM8, -1.62% finished down 6.6%
at $7,647.50, while the CME May contract BTCK8, -1.19% closed off 7.2% at
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