Bitcoin’s price has dropped to a new four-month low.
According to media reports, Bitcoin’s price fell by 5.5 percent, bringing it down to $100,992. Ethereum’s (Ether) price also dropped by 6.6 percent, while several smaller cryptocurrencies (Altcoins) have lost more than 50 percent of their value so far this year.
Analysts say that this market pressure began in mid-October, when large-scale liquidations of long positions caused billions of dollars in losses. Since then, investors have been adopting a cautious approach. Open interest in Bitcoin futures remains well below pre-crash levels, and although funding rates have improved, traders are avoiding re-entering the market.
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Experts note that Bitcoin has only increased by 10 percent this year, underperforming the stock market. Chris Newhouse, Director at Argonia Research, says that investors are now trading in a short-term and cautious manner.
