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Bitcoin Price Slips to $9,200 and Drags Market with It

June 24, 2020 at 17:05 by Matt Jackson

Bitcoin’s price fell as low as $9,200 on some exchanges in Wednesday trading, and the rest of the cryptocurrency market saw red amid bearish sentiment. The likes of Ethereum, Bitcoin Cash, and Bitcoin SV all posted losses of more than 3%. The slide comes as reports show miner Bitcoins being moved to exchanges. Analysts expect the move to lead to major selling, which could further push prices down. Investors will be hoping that $9,000 support will hold and that yesterday’s bullish momentum is allowed to return.

The world’s largest cryptocurrency saw its price rise to $9,600 yesterday, but it failed to hold the position despite many traders and analysts calling for a further rise to $10,000. Bitcoin, which is still up 30% from the start of the year, had seen minimal price movement for most of June, trading between $9,000 and $10,000 for virtually the whole month.

However, it has emerged that miners are preparing to sell off Bitcoin stock, which could be the cause for today’s drop. According to Glassnode, the net flow of coins into and out of miners’ wallets stood at nearly -3,000 on Tuesday, and further reports suggest that the majority has been moved to exchanges, indicating that miners are ready to sell off the reserves they have accumulated by verifying network transactions. This could lead to substantial sales, pushing prices lower.

However, there are continued hopes that US President Donald Trump could inadvertently help propel prices upwards. When the US sent out its first round of stimulus checks, designed to help individuals cope with the financial pressure of the Coronavirus, the money was linked to a spike in volume of Bitcoin purchases and Bitcoin prices rose more than 50%.

Although an additional round of stimulus checks has not been explicitly confirmed, Trump has responded to reporters’ questions by saying “We are. We are” and then going on to say that what they are doing will be “very good” and “generous” and that it will likely be within the next couple of weeks. The instability of traditional markets means that many recipients may well choose to invest their stimulus money in Bitcoin and other cryptocurrencies, which could well lead to another increase.

It is expected that additional stimulus checks will arrive in July, and a number of other packages have been mooted by officials, including an intriguing travel credit, presumably designed to get citizens moving around the country again and encouraging them to spend money.

At 18:00 GMT, Bitcoin (BTC) was down 3.32% and changing hands at $9,328.78 while Ethereum (ETH) had dropped 3.76% to trade at $234.57. Ripple (XRP) has performed better than most but still shed 2.62% from its price. It now costs $0.184. Bitcoin Cash (BCH) and Bitcoin SV (BSV) fell 3.54% and 3.1% to $233.06 and $172.86 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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