Last night, the Bitcoin price dipped below the psychological level of $10,000, dragging altcoins along into a bloodbath.
In its recent article, Forbes suggests several reasons why the major crypto asset reversed from its uprising course and went down.
The chief analyst of eToro, Mati Greenspan, wrote to eToro investors on Wednesday:
Once again bitcoin is searching for support and having trouble finding it.
Reason 1. Libra
As the first reason, Forbes names the resistance that Facebook’s Libra currency faced from global regulators, bankers and lawmakers. Even in France and Japan, regulators and heads of the central banks started talking that Facebook’s entering the market with a crypto asset may disturb the current financial system.
The announced launch of LBR, reportedly, drove China to faster development of its own centralized crypto that the local central bank (PBOC) plans to release soon.
Reason 2. The US-China trade war
Some experts believed that the escalation of the trade war between the US and China made investors buy more BTC in order to hedge their risks against the falling yuan quotes.
However, now the two countries seem to have come to a consensus, so this may have pushed the Bitcoin price down as well.
Reason 3. Brexit
As per Forbes, the approaching day of the UK finally exiting the European Union is making the situation in the European economy less certain, which is impacting the financial markets and the Bitcoin price as well.
Mati Greenspan says:
Many analysts have been doing their best to tie in the latest moves in the crypto market to the uncertainty in geopolitics but it's difficult to say exactly how much connection there really is.
Reason 4. Traders initiating a BTC sell-off
On his Twitter handle, Peter Schiff, the chief executive of Euro Pacific Capital Group, wrote that the reason of the current Bitcoin price going down is that many traders who bought BTC when the Chinese yuan was dropping are now taking their profits off the table.
Reason 5. The SEC postponing the decision on the ETFs
Recently, the SEC got the crypto community disappointed by postponing the final decision on whether to allow or not the launch of several Bitcoin exchange-traded funds (ETFs).
The applications for those were filed by SolidX, Bitwise Asset Management, VanEck and Wilshire Phoenix. The decision has been put away for announcement until mid-fall.