The cryptocurrency market has taken a tumble yet again and the entire market cap is now a little above $202 billion (at the time of recording). The price of Bitcoin was trading slightly above $6400 and is fast threatening to breach those levels. Ethereum has taken the worst hit as its price has already reached its 2018 lows, trading at around $225.
So, why is the price of Bitcoin and other altcoins falling so rapidly today? Analysts think that there are three main reasons:
- First and foremost, Goldman Sachs has shelved plans to set up a Bitcoin trading desk anytime soon. While it does not mean that they have completely benched the idea, the delay might have resulted in a little panic in the market.
- Popular instant Bitcoin exchange ShapeShift has introduced a registration process, and some analysts have suggested that this may have spooked users. We personally do not believe this would have had such a huge impact.
- Price manipulation and insider trading certainly seems to be a plausible reason considering someone shorted 10,000 BTC before the Goldman Sachs announcement. In fact, CCN wrote an interesting article citing an AI tool that may have spotted some foul play before the big crypto drop!
We recommend that users trade cautiously and take short-term profits where possible!