The Bitcoin price (BTC/USD) has held above the $8,000 level despite experiencing a significant drop in the early hours of today’s trading.
While the original cryptocurrency hit intraday highs above $8,000 on both Friday and Saturday, it notched up its first close above that mark in nearly three weeks in yesterday’s session. On Sunday, the digital coin hit an intraday of $8,338.42, its highest price level since March 26, before closing at $8,329.11.
Shortly after the start of today’s session, Bitcoin rose to around $8,370. However, the cryptocurrency has since seen a sharp pullback, with its price falling to as low as $8,045. Still, the cryptocurrency has so far managed to defend the $8,000 level and is currently hovering around $8,110, according to data from Coinmarketcap.
Tom Lee, head of research at Fundstrat Global Advisors, earlier this month suggested that bitcoin’s recent struggles were driven by tax-related selling ahead of the April 17 tax filing deadline in the US. Lee said in a phone interview with CNBC last week that the Bitcoin price could reach $25,000 by the end of the year.
Also last week, the chief executive officer of BKCM, Brian Kelly, said that the cryptocurrency could be a game changer, but it’s still in the early stages of its development.
“I think this technology is going to work, it’s going to be game changing, but it’s very early days, so we can have this massive volatility,” he said on CNBC's "Fast Money" programme.
Kelly also seemed to agree with Lee’s analysis, but he said that “we’ll know presumably after April 17 if we can hold these gains”.
In today’s trading, the Bitcoin price stood at $8,112.45, as of 09:15 BST. The cryptocurrency has gained 0.4% in the past 24 hours. It’s total market capitalisation currently stands at $137.7 billion.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.