Bloomberg News
Bitcoin traded in negative territory Friday afternoon, on track for a second consecutive losing week as momentum shifts for digital currencies.
The price of a single bitcoin slumped below $8,000 overnight to an intraday low of $7,931.43, its lowest level since April 18.
The No. 1 digital currency has since regained $8,000, last trading at $8,141.32, down 0.8%, since Thursday’s levels at 5 p.m. Eastern time on the Kraken exchange.
What are analysts saying?
With bitcoin now down by more than 15% from its early May high, when it traded near the $10,000 psychological level, one analyst thinks the market suffered from over-exuberance. “Throughout the year, each time market participants have expected growth, the trend has reversed into a decline,” wrote Alexander Kuptsikevich, analyst at FxPro.
“Bitcoin in particular, after having experienced growth for 3 weeks and attempted to move above $10,000, is now in a downward trend that has already lasted for two weeks.”
However, one analyst said the dip is nothing but a mild selloff and any further significant losses are unlikely. “Volume is flat, the bulls have certainly stalled,” said Jeff Koyen, president of 360 Blockchain USA. “But there’s so much positive market news, so much external validation coming in, it would be frankly bizarre to see a sustained bear turn right now.”
What are futures and altcoins doing?
Altcoins, or those considered alternatives to bitcoin, are under pressure Friday, tracking bitcoin lower. Ether has lost 1.1% to $678.49, Bitcoin Cash has slumped 3.2% to $1,188.40, Litecoin is of 1.8% at $132.79 and Ripple’s XRP coin last traded at 67 cents, down 0.4%.
Futures are on track for another losing day. The Cboe June contract is down 0.8% at $8,160, while the CME May contract is down 0.7% at $8,125.