Bitcoin’s Price Falls Below $6,000 Support – Experts Comment

As bitcoin continues its plunge below $6,000, I thought you may want comments on what’s causing this drop from Mati Greenspan, Senior Market Analyst at eToro, as well as Ken Lang, CTO of COSIMO Ventures and early ndau collective member. Please see below for Mati and Ken’s comments and let me know if you have any additional questions or if you’d like to connect with Mati or Ken.

Bitcoin's Price Falls

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Mati Greenspan, Senior Market Analyst, eToro:

“Three main factors are contributing to today’s drop in Bitcoin price.

[REITs]

Q3 hedge fund letters, conference, scoops etc

“First, the Bitcoin Cash hard fork is turning out to be an arms race among bitcoin miners. It may not have direct impact on price but it’s something people are concerned about — there is a fear that miners might be diverting mining power away from bitcoin into Bitcoin Cash. On paper, however, bitcoin has more than enough hash rate to maintain their transaction rate.

“Another contributing factor is the selloff in tech stocks, which could be having a spillover effect into crypto markets.

“Finally, from a technical analysis standpoint, as bitcoin’s price falls below $6,000 we’re seeing liquidation: stop loss orders automatically going into effect and/or people trying to play the breakout.”

Ken Lang, CTO of COSIMO Ventures and early ndau collective member:

“One relevant factor in the price drop is that bitcoin doesn’t have a monetary policy in place to mitigate downside volatility.  That means that when demand contracts, there needs to be a process in place for contracting supply. Otherwise, market prices will fall, as we’ve seen today. As cryptocurrencies become more sophisticated and learn from the volatility and risks of older, more established coins, they should be designed with constraints in mind that help fight against sudden price dips like this one.”



About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver