The Bitcoin price (BTC/USD) has dropped below the $6,200 mark following a slump in late Tuesday trading.
The original cryptocurrency was relatively stable in the early hours of yesterday’s session, rising to an intraday high of $6,290.16. However, the digital coin could not defend the early gains and pulled back in subsequent trading. The decline accelerated in the afternoon portion of the session, when the Bitcoin price fell below the $6,200 mark. The coin saw a spike towards the end of the session, but that was immediately followed by a steep drop, which brought the price to a close of $6,093.67. This was significantly lower than Bitcoin’s opening level of $6,253.55.
The No. 1 digital coin hell to as low as $6,060.75 shortly after the start of today’s session, but it has managed to stop the decline in more recent trading. At the time of writing, the Bitcoin price was hovering around $6,110, according to data from cryptocurrency tracker Coinmarketcap.
While Bitcoin has managed to rebound from recent lows below the $6,000 mark, the coin’s performance in the past 24 hours has been far from convincing. Blockchain venture capitalist Spencer Bogart recently told CNBC that the Bitcoin price could still 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 on Monday, 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.
In today’s trading, the Bitcoin price stood at $6,109.25, as of 10:54 BST. The digital coin has lost 1.8% of its value in the past 24 hours.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.