Wednesday’s selloff will test crypto traders resolve, analyst says.
Digital currencies are under pressure since early Wednesday, led by the altcoins which were showing double-digit losses.
The price of the No. 1 digital currency, bitcoin had made a seven-week high late Thursday, trading to $9,746.82 before following the altcoins lower this morning. A single bitcoin last changed hands at $9,103.70, down 5.6%.
Despite this mornings selloff, bitcoin has notched gains in six of the last seven days, a streak not matched since mid-February, which should keep the cheer intact for now.
“The crypto market is currently engulfed by a feeling of optimism. Its participants suggest that the worst has passed and that the decrease in trading volumes has cooled the regulators’ interest in the market,” wrote FxPro analysts in emailed comments.
“It’s also worth noting that the difficulty in mining new coins is growing, so any positive news is likely to provoke price hikes.”
What are altcoins and futures doing?
As stated, it’s a bloodbath for altcoins. Ether has lost 11.9% to $650.09, Bitcoin Cash has given up 10.5% to $1,276.12, Litecoin is down 10.8% at $147.95 and XRP coin, the currency on the Ripple network is at 80 cents, down 14.4%.
After a record setting start to April, led by Bitcoin Cash which doubled in price, the Wednesday’s selloff will test the mettle of crypto bulls.
“Over the next few hours, we should be able to get a good test of cryptotrader sentiment and see how dedicated they are to buying the dips,” said Mato Greenspan senior market analyst at eToro.
Bitcoin futures are lower Wednesday. The Cboe’s May contract is down 3.5% at $9,130 and the CME Group Inc. April contract has lost 4%, last trading at $9,075.