MarketWatch – Bitcoin slumps to one-month low, trades under $8,000

Commentary, News

Over exuberance swings bitcoin back under $8,000

Bitcoin opens lower Friday and is on track for a second consecutive losing week—something that hasn’t happened since early March—as investors brace for what could be a momentum shift for digital currencies.

The price of a single bitcoin BTCUSD, -1.65%  slumped below $8,000 overnight to an intraday low of $7,931.43, its lowest level since April 18.

The No. 1 digital currency has since regained $8,000, last trading at $8,111.09, down 1.2%, since Thursday’s levels at 5 p.m. Eastern time on the Kraken exchange.

Read: People are buying bitcoin—because their horoscope said so

What are analysts saying?

With bitcoin now down by more than 15% from its early May high, when it traded near the $10,000 psychological level, one analyst thinks the market suffered from over-exuberance. “Throughout the year, each time market participants have expected growth, the trend has reversed into a decline,” wrote Alexander Kuptsikevich, analyst at FxPro.

“Bitcoin in particular, after having experienced growth for 3 weeks and attempted to move above $10,000, is now in a downward trend that has already lasted for two weeks.”

Read: Is Jamie Dimon doing a U-turn on bitcoin?

What are futures and altcoins doing?

Altcoins, or those considered alternatives to bitcoin, are under pressure Friday, tracking bitcoin lower. Ether ETHUSD, -1.79%  has lost 1% to $679.01, Bitcoin CashBCHUSD, -6.30% has slumped 4.1% to $1,177.40, Litecoin LTCUSD, -2.70%  is of 1.9% at $132.02 and Ripple’s XRP coin XRPUSD, -1.67% last traded at 67 cents, down 0.4%.

Futures are on track for another losing day. The Cboe June contract XBTM8, -1.61%  is down 1.4% at $8,110, while the CME May contract BTCK8, -1.16%  is down 0.9% at $8,105.

CryptoWatch: Check bitcoin and other cryptocurrency prices, performance and market capitalization—all on one dashboard

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