Bitcoin price (BTC/USD) drops to three-weeks low below $9,000

Fundstrat believes the original cryptocurrency could hit $36,000 by next year’s end

Bitcoin price (BTC/USD) drops to three-weeks low below $9,000

The Bitcoin price (BTC/USD) has dropped below the $9,000 level after experiencing a sharp decline in Friday’s morning session.

The original cryptocurrency had a difficult session yesterday, with the $9,000 mark coming under pressure towards the end of the day. The digital coin was able to hold above the key price level, closing the session at $9,043.94, down from its opening level of $9,325.96.

The cryptocurrency continued to lose ground in the early hours of today’s trading, with its price dipping below $9,000 for the first time since May 1. This was followed by a drop to $8,696.02, a three-week low. Bitcoin has managed to recover some of its losses in more recent trading and its price is currently hovering around $8,790, according to data from cryptocurrency tracker Coinmarketcap.

Despite Bitcoin’s ongoing troubles, investment research firm Fundstrat remains optimistic about the cryptocurrency’s longer-term prospects. In a report published yesterday, Fundstrat pointed to the growth of Bitcoin mining activity as a likely driver of a new price surge for the digital currency.

"We believe the current path of hash power growth supports a BTC price of about $36,000 by 2019 year end, with a $20,000-$64,000 range," Sam Doctor, head of data science research at Fundstrat, said in a report, as quoted by CNBC.

Doctor added that the economics of Bitcoin mining likely create a support level for the cryptocurrency. He noted that miners are more likely to hold Bitcoin as its price falls to breakeven for operating costs and sell as the price rises to pocket greater profits.

Fundstrat was co-founded by Tom Lee, a Wall Street analyst who is widely known for his bullish views on Bitcoin.

In today’s trading, the Bitcoin price stood at $9795, as of 10:06 BST. The digital coin has lost 6% of its value in the past 24 hours.

For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.

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