Bitcoin and cryptocurrency markets are in turmoil along with traditional markets with many of the biggest digital tokens, including ethereum, ripple’s XRP, and litecoin, recording double-digit declines over the last 24-hour trading period.
The bitcoin price has been hovering around $10,000 since late June but has struggled to climb much beyond that level after global regulators poured cold water on social media giant Facebook’s plans to launch its own bitcoin rival some time next year, thought by many to be the main driver of the bitcoin price so far in 2019.
Now, bitcoin has once again dipped under the psychological $10,000 mark before somewhat recovering—leaving traders and investors nervously watching for more potential loses.
“Once again bitcoin is searching for support and having trouble finding it,” Mati Greenspan, senior market analyst at brokerage eToro, wrote in a note to clients earlier today.
While bitcoin is off some 6% over the last day, bitcoin cash, a varient of the original bitcoin, has led the market lower, losing more than 10%.
Ethereum, Ripple’s XRP, and litecoin, which between them make up the top five cryptocurrencies by market capitalization, are all down just under 10%—wiping around $20 billion from the total value of all cryptocurrencies in just one day.
Some bitcoin and crypto analysts have speculated the fall in bitcoin prices is a response to a recovery in China’s yuan, while others have looked to trouble in global equity markets brought on by the escalating U.S. China trade war.
Meanwhile, recent economic data out of China and Germany pointing to a faltering global economy and the U.K.’s looming exit from the European Union are all adding to uncertainty.
“[Bitcoin and cryptocurrency] volumes are back to normal today throughout the market but the price seems to be gradually falling,” Greenspan added. “Many analysts have been doing their best to tie in the latest moves in the crypto market to the uncertainty in geopolitics but it’s difficult to say exactly how much connection there really is.”
Stocks around the world have slumped to more than two-month lows as Asian markets opened on Thursday, following Wall Street’s earlier slide after a closely-watched recession indicator, yields on 10-year U.S. Treasury notes, flashed a warning to investors.
Veteran investor and chief executive of Euro Pacific Capital Group, Peter Schiff, tweeted the latest bitcoin and cryptocurrency market drop is a result of recent buyers cashing out of the market.
“Now that trade tension with China has eased, the pressure on the yuan is off,” Schiff said. “Those who bought bitcoin to speculate on Chinese safe haven buying, which never happened, are taking their chips off the table.”
Elsewhere, bitcoin and crypto investors were disappointed this week when the U.S. Securities and Exchange Commission (SEC) again delayed making a decision on three bitcoin exchange-traded fund (ETF) proposals.
A final decision on each of the ETFs, proposed earlier this year by asset managers Bitwise Asset Management, VanEck and SolidX, and Wilshire Phoenix, are now expected at the end of September and mid-October.