Bitcoin Price Drops Nearly 10%—and Back Below $8,000
Bitcoin fell back below the $ 8,000 level for the first time in more than a week to halt its most recent rally, leading a wider retreat among cryptocurrencies.
The largest digital currency slumped almost 10% and was trading at $ 7,930 at 8:57 a.m. in Hong Kong, its biggest retreat in about two weeks, according to consolidated Bloomberg pricing. Bitcoin touched a year-to-date high of almost $ 9,100 on May 30, the data show. The wider Bloomberg Galaxy Crypto Index also fell as alternative coins including Ether and Litecoin retreated.
Bitcoin is down about 6% so far in June, after its best month since August 2017 amid a resurgence in investor sentiment following months of relative inactivity. Industry watchers pointed to renewed institutional interest this year with the likes of Facebook Inc. and JPMorgan Chase & Co. developing coins of their own.
“It just got a little bit extended, this is a healthy retracement,” said Timothy Tam, co-founder and chief executive at CoinFi, a cryptocurrency research firm in Hong Kong. “There’s quite a lot of volume going through, this is normal Bitcoin volatility. At the end of the day it still doesn’t take a lot of money to move these markets compared with traditional markets.”
Headwinds from the wider sell-off in global markets are also a factor, leading to “speculative flow” through alternative markets such as cryptocurrencies as well, Tam said.
More must-read stories from Fortune:
—Bitcoin: A hedge for Trump’s China trade war?
—Scammed porn watchers have paid nearly $ 1 million in Bitcoin blackmail
—Bitcoin comes to Whole Foods and other major retailers in coup for digital currency
—Brainstorm Finance is almost here. Join us on the beach in June
—Listen to our new audio briefing, Fortune 500 Daily
Sign up for The Ledger, a weekly newsletter on the intersection of technology and finance.
Rules of Discussion on Live Index
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.