Bitcoin Drops 7.67% After Seeing Largest Rise Since May: Possible Reasons
The world’s flagship cryptocurrency has been declining since it reached the peak of $42,559 on August 1, dropping almost eight percent by now.
On Monday in particular, it has dipped 5.6 percent, hitting $39,280 in New York. The overall decline since August 1 totals 7.67%.
Altcoins, including the second-biggest crypto Ethereum, have also gone down a little. Chief of the Asia Pacific at digital exchange Luno (owned by Barry Silbert’s Digital Currency Group) Vijay Ayyar believes this is a regular correction that is following a bullish price action.
In the past few weeks, Bitcoin’s rise has been fueled by the positive comments from Tesla CEO Elon Musk he gave during the B-Word Zoom conference, in which he discussed Bitcoin and its prospects with Jack Dorsey and ARK CEO Cathie Wood.
Wood’s supportive narrative for Bitcoin has also been a likely reason to move the price to the North.
One of the possible recent reasons for the Bitcoin decline, apart from it being a natural correction, according to the Luna CEO, is the recent initiative of the US Senate to impose harsher taxation rules on crypto investors and traders.
Besides, China has stated that it will continue to clamp down on cryptocurrency traders and exchanges.
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