Worries About the Bitcoin Cause Its Value to Decline Below $6,000. The bitcoin has reached a new low for the year as it went under the $6,000 mark for the first time this year. The currency had been trading at around $7,500 at the start of June, but it has quickly fallen in value.
On Sunday, the bitcoin experienced a dramatic shift in value to under the $6,000 mark. The currency went to around $5,900 for a few hours in the trading day. The currency would soon move back up in value to around $6,200.
The drop in the currency’s value marks a sharp shift from earlier in the year. The currency had been at close to $20,000 during the early part of the year as the market for the currency had been highly bullish.
Concerns Surrounding Hacks
One vital concern about the bitcoin to review entails the ongoing worries about hacks on the market. The South Korean currency exchange Coinrail experiencing a hacking attempt in recent time this month, thus causing the currency to drop in value. The move has led to a need in the country to treat exchanges in the same way as banks are treated. Increased fears have caused the currency to drop as people start to notice some of the changes coming onto the bitcoin market.
What About Support Levels?
The next slated support level for the bitcoin is projected to be very low. Some projections have that support level listed at around $5,000. This is based on the ongoing downward trend that the currency has been experiencing in recent time.
If the currency continues to drop, there is a risk that the bitcoin could drop to below $5,000 for the first time in nearly a year. The bitcoin had been under that total in October of last year. This came before the bitcoin’s rise in value and eventual fall back downward.
Volume Considerations
The decline in the bitcoin’s value marks a new sense of uncertainty in the market as the currency continues to shift up and down. Even with these changes, the volume of the bitcoin on the trading market has been consistent throughout much of the past month.
The daily volume for trading continues to be around the $4 billion mark for the most part. This consistency shows that while the bitcoin continues to be a popular investment for trading purposes, there continues to be concerns over how well the currency is being handled.
The Impact on Other Currencies
The concerns over the bitcoin’s value have caused many other currencies to experience similar drops in their values. This includes Ethereum continuing to move under the $500 range while other currencies experience similar problems with their values as they change.
The Tether currency did experience a slight uptick in its value though. The currency, which is linked to the American dollar, saw a sizeable rise in its value for a brief moment as news about the bitcoin’s new low began to spread. The market cap of that currency has been slowly moving towards the $3 billion mark, thus making it an outlier in the cryptocurrency market over its long term potential.
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