Bitcoin (BTC) fell below the psychologically important mark of $ 51,000 in a 24-hour period leading up to press time late Thursday night and one analyst believes more pain is yet to come.
What happened: The apex cryptocurrency by market capitalization touched an intraday low of $ 50,856.57. At press time, BTC was 0.51% lower at $ 52,019.04.
In a seven-day tracking period, BTC is down 9.57%. From its all-time high of $ 61,683.86, reached twelve days ago, the cryptocurrency is down 15.77%.
Analysts expect the downside momentum to continue, warning that BTC may break above the $ 50,000 levels.
“Judging from recent events, traders seem happy to sell rallies rather than buy the dip. So don’t be surprised if we see renewed weakness in the markets later in the session, ”wrote Fawad Razaqzada, market analyst at ThinkMarkets, as reported by MarketWatch.
Razaqzada said that there could be more bad news for BTC. “Crypto has been positively correlated with risk assets over the past year and if that relationship remains strong, then digital currency could follow risk assets to the downside.”
Because it is important: Razaqzada urged Bitcoin traders to exercise caution as according to him, the “appetite for risk” is slowly fading, MarketWatch reported.
Tesla Inc’s (NASDAQ: TSLA) The announcement that it would accept BTC for payments also led to profit-taking, according to Shane Ai, head of research and development at cryptocurrency exchange Bybit, Business Insider reported.
See also: How Tesla Plans To Address Bitcoin’s Volatility In Its Vehicle Payments
Another factor that contributed to BTC’s decline is the expiration of $ 5 billion in options, which expire on Friday, according to Ai.
The expiration of contracts and some investors pushing the price down to make money betting against the cryptocurrency in the options market “have led to a pressure of spot selling until the end of the quarter,” according to the analyst.
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