Bitcoin Slumps: Analysts Ask, ‚Why?‘
Bitcoin Slumps, Analysts Wonder Why
- At the time of writing, the price of bitcoin has fallen towards $28K.
- Crypto analyst Tim Enneking blames rising federal interest rates for bitcoin’s dip.
- The news of Coinbase potentially looking into relocating to Bermuda may have also impacted the currency.
What Caused the Price Dip?
The price of bitcoin – the world’s number one digital currency by market cap – has recently fallen towards $28K, about $2,000 less from where it was just a few weeks ago. Crypto analyst Tim Enneking recently blamed rising federal interest rates for why the price of bitcoin continues to endure small periods of suffering. He stated that major events still cause correlation between crypto and fiat currencies, and that pending FOMC decisions have halted the upward movement of cryptocurrency. Additionally, regulatory uncertainty (the SEC and Bittrex, MICA) as well as banking difficulties (Silvergate, Signature), and contagion fears (banking, commercial real estate) are all conspiring to create a retracement after what crypto has seen as a major move up.
The Impact Of Coinbase
The news of Coinbase potentially looking into relocating to Bermuda appears to have also impacted bitcoin’s price. The top crypto exchange has applied for a license in that part of the world and will allegedly investigate leaving the U.S., though customers in America will still be serviced. Coinbase took issue with an SEC Wells notice which said that while they had not yet been charged with a crime, charges were likely coming and cited ongoing regulatory concerns as their reason for potential relocation.
Experts‘ Take On Bitcoin’s Slide
Scott Melker – a crypto writer and investor – said bitcoin’s slide is nothing to worry about – calling it “nothing more than a healthy retracement after an overextended move to the upside” – while Marc Bernegger – co-founder of crypto fund Alt Alpha Digital – echoed this sentiment by saying investors simply took some profits from table due to massive gains in recent weeks.