Bitcoin drops back below $10,000 but why?

Fibo Quantum

The price of bitcoin has a major decline of 26.6% in the past week. From a fantastic high of $13,200 on July 10th to today’s low of $9,684. Many crypto analysts believe that this drastic one-week pullback was caused by technical factors which were further pushed by sellers. Traders selling off BTC essentially took control of the market when the dominant crypto dipped below key support areas at $11,000 and $10,700.

Why has bitcoin’s price dropped?

A global markets analyst, Alex Krüger, believes that the recent criticism of cryptocurrencies and bitcoin from U.S President Donald Trump along with Treasury Secretary Steve Mnuchin could have contributed to the price dip:

“When the U.S. government attacks bitcoin directly, saying it’s exploited to support billions of dollars of illicit activity, based on thin air, and how they are concerned about its speculative nature, and the crypto echo chamber roars ‘bullish,’ it probably is a good time to short. There is nothing bullish in antagonizing with the largest gorilla in the room. Most U.S. politicians unfortunately seem to be convinced crypto is the realm of money laundering and drug trafficking. This needs to change. I bet people use Paypal or Venmo more than bitcoin to pay for illicit activities. Also bet most criminals don’t even know what monero is, yet they all heard about the dollar. Unfortunately, perception trumps facts.”

Bearish technical indicators and the comments of President Trump and Secretary Mnuchin affecting overall sentiment towards crypto should be considered to the major factors for BTC’s recent price correction.

At the time of writing the cryptocurrency market, in general, is in the red. All top tier cryptocurrencies have seen a drop in the past 24 hours. Bitcoin is currently trading hands at $9,580.30, down by almost 11% as per data from CoinMarketCap.

Altcoin markets:

The worlds second-largest crypto, ethereum (ETH) is down by 10.61% and trading at $203.59. Ripple’s XRP is down by 4.11% and exchanging hands at $0.300876. EOS and Litecoin (LTC) seemed to have taken the biggest knock. LTC is down by 11.27%, trading at $79 while EOS is is down by 13% and trading at $3.