Bitcoin Price Falls Below $6,200 for the First Time in a Month as Bearish Pressure Builds
Bitcoin’s price fell below $6,200 on Wednesday, setting a new multi-week low and opening the door for a re-test of the psychologically significant $6,000 support. However, much like the previous day, BTC has exhibited wide price variance on major exchanges.
The bitcoin price bottomed just below $6,190 on Coinbase, its lowest in over a month. At the time of writing, BTC/USD was down 1.2% at $6,216 at the leading San Francisco-based exchange.
For Bitfinex users, bitcoin is currently trading hands at $6,390, a large premium compared with other exchanges. The Bitfinex premium isn’t uncommon given the platform’s oversized exposure to USDT, a controversial dollar-backed stablecoin.
The bitcoin price quoted by CoinMarketCap is currently $6,295, bringing the total market cap down to $109.4 billion. Trade volumes were a robust $4.5 billion, with derivatives platform BitMEX processing more than a fifth of the daily turnover. CoinBene and BitForex were second and third, respectively, in terms of daily trade volume.
Over the past week, the leading digital currency has lost 3.6% of its value. By comparison, the broader cryptocurrency market has fallen 6.2% over that period.
Crypto Markets Plunge Unexpectedly
Despite bitcoin’s sudden drop, alternative coins led by bitcoin cash, Tron and Stellar shouldered even heavier losses through the midweek. The combined market value of all cryptocurrencies declined by nearly $8 billion overnight, which allowed bitcoin to reclaim a bigger share of the overall market cap. At the time of writing, the total cryptocurrency market was worth $202.3 billion, according to CoinMarketCap. Bitcoin’s dominance rate strengthened to 53%, the highest in over a week.
A selloff of bitcoin cash appears to have precipitated the decline, as the fourth-largest cryptocurrency continues to unwind from last week’s high. As CCN recently noted, BCH has declined more than 24% over the past week. On Wednesday, the eve of the highly anticipated hard fork, BCH fell almost 9% to $483.
Despite feeling the pull of alternative coins, bitcoin has managed to shield itself from previous selloffs as crypto investors opted for the relative stability of BTC over all others. Although bitcoin has failed to show meaningful upside since early September, its underlying volatility has fallen to the lowest level since 2016. The bitcoin volatility index courtesy of bitvol.info shows a 30-day average of 1.05%. Earlier in the week, it fell to 1.03%, the lowest in over two years.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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