Despite the positive Bitcoin price momentum over the past two days, things have taken a turn for the worse once again. With a 7.21% decline over the past 24 hours, the Bitcoin price is once again falling pretty hard. Right now, one Bitcoin is worth less than $4,000 although the end may not be in sight just yet. It is unclear what drives this new massive sell-off, as there is no real reason for such panic moves.
Bitcoin Price Keeps Taking Hits
All bets are off as far as the cryptocurrency markets are concerned right now. Over the past two days, it appeared as if the Bitcoin price was starting to recover a bit. Just yesterday, the price nearly hit $4,400 as it became apparent the latest news from China regarding the suspension of exchange-based trading was nothing more than an illicit rumor. However, it seems some people are still taking this warning to heart and liquidate all of their cryptocurrency assets as a result.
One thing that could explain this recent sell-off is the statement by the JP Morgan CEO. Although this bank doesn’t have the most solid of reputations in the financial sector, their CEO took the time to officially “denounce’ Bitcoin. For some reason, this news has sent even more shockwaves throughout the cryptocurrency communities over the past few hours. Bitcoin doesn’t need approval from bank CEOs to be successful, otherwise, it would have died a slow death years ago.
Then again, statements like this from the CEO of the world’s third-largest bank still carry a lot of weight. It is not entirely surprising the Bitcoin price dropped by a few percent in quick succession. This statement, combined with the recent China rumors, have successfully spooked some of the “weaker hands” in the cryptocurrency world. The statement by JP Morgan’s CEO carries no real weight whatsoever, though, and should be disregarded. In fact, every time a bank CEO tells you not to invest in something, it is all the more validation to do the exact opposite.
Right now, the Bitcoin price is short of the $4,000 target and may drop a bit lower before things stabilize again. It is unclear where the real support is resting for Bitcoin right now, as very few people expected to see a price dip below $4,000 at this point in no time. Then again, cryptocurrency markets remain highly unpredictable and volatile first and foremost. This current Bitcoin price trend illustrates that statement perfectly.
Always Fact Check: An hour ago, a fake screenshot (PBoC officially bans exchanges) sent to Wechat groups triggered huge sells in CN markets pic.twitter.com/vL5W7LqrQb
— cnLedger (@cnLedger) September 12, 2017
There is no shortage of Bitcoin trading volume, though. Over the past 24 hours, all tracked exchanges combined processed nearly $2bn in trading volume. That is more than $300m higher compared to the day prior, which resulted in a small price gain. Today, it appears bearish sentiment controls all of the markets, which is rather unfortunate. Chinese exchanges are still actively trading Bitcoin in large quantities, though, further indicating there is an impending suspension of such services in the country whatsoever.
One thing to keep in mind is how the Chinese exchanges no longer trade Bitcoin below the global market average. More specifically, the earlier gaps of $600 and $200 have all but disappeared right now. It seems the Western exchanges drove the price down to meet China’s price, as their prices have declined by a bit less compared to Western exchanges. An interesting correlation that may hint at a joint effort to restore the Bitcoin price back to the $5,000 level over the next few weeks.