Bitcoin falls below $6,000 for third time this year

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On Friday, the price of Bitcoin (BTC) went below the $6,000 price for the third time in 2018. It’s believed that the Bitcoin futures trading has continued to have a major impact on the price point of the cryptocurrency. While it’s believed there may be some market manipulation going on from investors with large amounts of money to use, recent research data has showed other trends.

In a recent report from Cointelegraph, it’s noted that the last time Bitcoin dipped below the $6,000 level was on June 24. The belief is that ever since Bitcoin futures trading was started up, it has provided a metric for market sentiment during the trading periods.

The price of Bitcoin reached a peak of $20,000 each back in December 2017 just before the futures trading started to play a part in the price action. A letter this past May from Federal Reserve Bank of San Francisco suggested the decline from that $20,000 high was due to the CBOE futures.

It’s also mentioned that various sources are at odds over how Bitcoin prices are affected. While some people believe the markets are being manipulated through trading, there has been research data that points out investors tend to buy and hold their coins.

A series of Twitter posts from a cryptocurrency analyst with the handle “BambouClub” points out that Bitcoin isn’t the Ponzi scheme some try to make it appear like. In addition, the tweets discuss how “whales,” or investors with a lot of money to put into the market, aren’t having the impact on prices that some believe.

The price of Bitcoin and other cryptocurrencies often rise and fall based on news. Some of the negative news that has tended to impact the crypto markets includes exchanges being banned in Asian countries, or news of cryptocurrency exchanges being hacked. Most recently, a South Korean exchange suffered a hack, which always leads to worry among people holding Bitcoin and other digital assets.

As of this report, the price of Bitcoin (BTC) was back above $6,000 at $6,379 on the popular Coinbase trading platform. The BTC price was over $6,300 at most other top exchanges including Bitfinex, Binance, and OKEx, as of the latest Coinmarketcap.com update.

 

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