5 Reasons Why Bitcoin Price Dropped Below $6000
Bitcoin News: Bitcoin (BTC) and altcoins have been facing some tough times lately and things just unravelled for the worst as their price point steeped further on Wednesday. Abandoning its previous lows of $6,192.91, Bitcoin fell as low as $5,700 within minutes. Market experts factor the negative mood surrounding the coin as the key factor for the fall.
Later, BTC managed to recover to around $5,585.50 on Bitmex, while her exchanges saw levels of around $6,200, definitely lower than the usual range. Apart from the pressure the token faces, here are the 5 latest factors that are pulling its price.
Bitcoin Cash (BCH)
The confusion surrounding the impending hard fork of BCH, that would probably be followed by a hostile attempt at a takeover through a 51% attack, to which the markets chose to react with negativity. The whole scenario takes away from the immutability aspect of the digital assets, implying that while assets might not be, the networks are fragile and dependent on human behaviour. This tussle has been surely affecting the BTC prices.
Miners getting disappointed
Bitcoin miners are getting tired of the thin-margin game. with BTC prices barely above the $5,800 mark, their profit margins are diminishing as well. Notably, certain mining operations aren’t viable even at higher prices, which might push the miners to close shop.
CryptoCompare’s latest data shows that the BTC/USDT pair took up more than 62% of all trading, in attempts to leave BTC for a stable-priced coin. Past few weeks, the USDT trading has subdued to just 44% of volumes. With USDT breaking below its dollar peg, once again trading at $0.97 on Kraken, the fear around Bitcoin’s general stability is surfacing with a stronger tide.
While USDT still continues to serve as a temporary safe haven, the traders are inclined to park funds in other stablecoins, such as TrueUSD (TUSD) and USDC, which trade above $1. Furthermore, the Tether treasury mopped up 70 million USDT from circulation on November 11, which led to decreased liquidity on the Bitfinex exchange. The lower availability numbers of USDT might not inspire a significant rally at least for now.
The exchange platform excludes general BTC statistics from price and volumes, making trading highly risky and speculative. Based on derivative activity, the Bitmex prices have fallen as low as $6,088, implying that bearish sentiment towards BTC continues, which could rub off over other markets.
Some beliefs that the bottoming action hasn’t yet over and if the market does not observe further selling and capitulation the token could be pressured as low as $4,000. On top of it, the hope of a year-end rally is diminishing by every passing day, creating more negativity in the space.
For the past month, Bitcoin prices have been stagnant, but that might be the bottom for the token, which cast multiple doubts into the investor’s mind. Not on their supporting best, the altcoins fall has affirmed this doubt further.
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