Bitcoin’s rise above $4,000 was shortlived this time with its price declining sharply below it on Thursday night by 9%.
The move erased the gain that it had experienced over the past few days.
Ethereum and XRP, the next two largest cryptocurrencies also experienced 15% and 9% price drops overnight.
Cryptocurrency Prices Struggle in the New Year
Cryptocurrencies performed well for the first week in 2019 with a lot of hope that the bear market had come to an end.
However, the gains didn’t last too long, and Bitcoin dropped 9% to a low of $3,570.29 on Jan, 10. Ethereum, XRP, and other major currencies in the market suffered a similar fate.
CNBC reported that analysts didn’t find any particular reasons behind the dip in prices on Thursday.
eToro’s senior market analyst Mati Greenspan noted that there didn’t seem to be a reason behind the drop and called it “neither technical nor fundamental.”
However, he noted that the movement seems interesting as it is an exact reversal of Sunday afternoon’s surge. He also added that 2019’s gains have also been reversed now, which means that “we’re back to a neutral 2019.”
What Is Happening With Bitcoin?
The pressures mounting on Bitcoin are many. First, the global retail mania for the coin has already come and gone.
Bitcoin’s market cap fell by 85% in a year and investors have been waiting for institutional adoption of the crypto.
Last year, two Bitcoin futures products were launched by CME and CBoE, and this year, the Nasdaq and the New York Stock Exchange’s parent company ICE plan to launch BTC futures.
Bitcoin doesn’t have clear regulatory guidelines set as of now and SEC chairman Jay Clayton said in November that he wants to see better custody solutions in the market.
He said this would be a requirement before any Bitcoin ETF product could be approved.
Numerous companies have pitched their ETF products to the SEC in the past, and all but those still under review have been rejected so far.