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Bitcoin Takes a Dive to $8,500 As Crypto Market Continues to Bleed

February 28, 2020 at 14:29 by Matt Jackson

The cryptocurrency market has continued to fall, with bulls dragging Bitcoin prices down below $8,500 for the first time since January 26. It looks likely that the world’s largest cryptocurrency will finish the month on a loss, despite February being a traditionally bullish month for the digital currency. Bitcoin’s price has fallen 2% in the past 24 hours. Ethereum and Ripple have performed best of the big coins, although they have still posted losses, while Bitcoin Cash, Bitcoin SV, and Litecoin have all lost nearly 5%. ChainLink is the biggest cryptocurrency to post gains while Huobi is the only other coin in the top 20 largest coins by market capitalization to see green.

February has proven a bullish month in recent years. The world’s largest cryptocurrency has posted gains every February since 2014  and has only shown losses in February in two of the last eight years. The coin’s worst-performing February came in 2014 when it shed more than 30% off its price in a single month. While it seems unlikely to reach those levels this year, Bitcoin’s current price of $8,600 represents an 8.5% loss for the month, although it has still posted 19% gains since the start of the year, having opened 2020 at $7,200.

Bitcoin has some way to go to recover its $9,000 position, with resistance having already formed at this point. There is further resistance at $9,200 before the cryptocurrency can make another attempt at passing the psychological $10,000 barrier that has proven a tough nut to crack in recent weeks. At one point today, prices fell as low as $8,445 on the Binance exchange, but it recovered quickly from this position.

The US Securities and Exchange Commission (SEC) rejected a bid from Wilshire Phoenix, on Wednesday, for a Bitcoin Exchange Traded Fund (ETF) stating that the company had not done enough to prove that the market was sufficiently robust to protect against market manipulation. This represents the latest in a long line of ETFs to be rejected by the SEC. Wilshire Phoenix had hoped to address previous issues raised by the SEC, by incorporating US Treasury bonds into their fund. The fund would auto-balance, so as Bitcoin volatility increased, the fund would increase its holdings in bonds and reduce its Bitcoin holding.

Volatility had been a previous complaint of the SEC. SEC Commissioner, Hester Pierce, wrote a scathing condemnation of the SEC’s approach to Bitcoin ETFs. said, following the ruling, that “this Commission is unwilling to approve the listing of any product that would provide access to the market for bitcoin and that no filing will meet the ever-shifting standards that this Commission insists on applying to bitcoin-related products — and only to bitcoin-related products.”

At 14:20 GMT, Bitcoin (BTC) prices had fallen 2.29% to $8,634.04 while Ethereum (ETH) had fallen 2.54% to trade at $223.66. Ripple (XRP) and Bitcoin Cash (BCH) had lost 1.89% and 4.97% to change hands at $0.235 and $309.05 respectively. Bitcoin SV (BSV) dropped 4.47% and cost $217.75.

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

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