Bitcoin price has been declining over the last couple of days and the latest 24-hour decline has pushed it below the $9,000 levels, close to $8,500 and is possibly heading towards a sub-$8,000 level.
Bitcoin price has fallen from a high of $10,200 to a recent low of $8,700, seemingly breaking its support level after many attempts. At the time of this writing bitcoin global average trading price stands at $8,550. This is the lowest bitcoin has fallen to since November, and more than half below its all time high of $20,000 reached in December.
The massive decline in pricing ever since 2018 set in has led to considerable decline in trading volumes as well. As of now bitcoin trading volumes are at around $8 billion, far lower than the $40 billion a week ago.
While some believe that bitcoin will soon see a surge, there are those who are seemingly eyeing $5,000, a 75% drop from its all time high, although time alone will tell.
We haven’t yet really seen despair, but as with astrology the trick of these charts is that you hardly ever know where you really are, thus they seemingly say plenty, while potentially saying nothing.
If we look at bitcoin fundamentals, nothing has changed. It was expensive in fees, very slow to transact, and in some ways outdated when it rose to the high just as it is now.
So you could say none of those are a factor to explain the recent price movement, but on a wider level its debut to the global stage might have allowed many newcomers to see first hand just what this is and how it works.
Another aspect that may have changed is futures. Whoever thought bankers were any good for bitcoin, might now think so no longer.
The global ongoing political debate on how bitcoin is to be treated is on-going, so that might not be a factor, but the divisive politics within the bitcoin community might have sent productive members to other cryptos in a brain drain.
Yet ultimately, our verdict is the simplest. It rose too high, too fast, everyone got far too drunk, the music reached volumes of deafening, so they went to sleep and woke up with a headache.