The Bitcoin price (BTC/USD) has so far had a relatively quiet trading session on Tuesday, with its price trading in a tight range.
The original cryptocurrency was mostly stable throughout yesterday’s session, having rebounded from a seven-month high below $6,000 in late Sunday trading. The digital currency experienced a drop in the early afternoon on Monday, with its price falling to an intraday low of $6,119.68. The coin managed to recover in subsequent trading and finished the day at $6,249.18, higher than its opening level of $6,171.97.
Bitcoin has been trading in the $6,200 - $6,300 range since the start of today’s trading. Following an early drop that sent its price near the $6,200 mark, the digital coin attempted to launch a rally, but its advance came to a halt at around $6,290. The Bitcoin price has since retreated to lower levels and is currently hovering around $6,230, according to data from cryptocurrency tracker Coinmarketcap.
Bitcoin and its crypto peers suffered heavy blows last week amid news of another exchange hack in South Korea and a new wave of regulatory measures targeting Japanese crypto trading platforms. While the market subsequently rebounded, blockchain venture capitalist Spencer Bogart thinks that the Bitcoin price will likely go lower due to forced selling of crypto funds.
“If we go back to the summer of 2017, when crypto prices were booming, there was about a 100, 200, maybe 300 new crypto hedge funds that were formed,” Bogart, who is a partner at Blockchain Capital, said, as quoted by CNBC.
One year later, many of these funds are "hitting their one-year lock up”, he explained. With prices of some cryptocurrencies having fallen more than 50%, many liquid providers are probably looking to sell.
“They’re saying, ‘hey, I want to redeem out of that fund,'" Bogart said. "That means forced selling on behalf of all of these new crypto funds that have popped up. I think that could take prices artificially lower.”
Meanwhile, Brian Kelly, founder and chief executive officer of crypto investment firm BKCM, yesterday told CNBC that he saw the first signs of Bitcoin making a comeback, including "quite a bit of demand coming from Asia".
In today’s trading, the Bitcoin price stood at $6,234.28, as of 10:01 BST. The digital coin has gained 1% in the past 24 hours.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.