Bitcoin price (BTC/USD) falls as Square withdraws banking application

The original cryptocurrency “can reach $25,000 by year’s end, according to Tom Lee

Bitcoin price (BTC/USD) falls as Square withdraws banking application

The Bitcoin price (BTC/USD) has fallen well below the $6,700 level following a sharp decline that occurred on Thursday afternoon.

The original cryptocurrency experienced some difficulties in yesterday’s early trading, but it managed to gain momentum later in the session, which allowed it to revisit the $6,700 level and notch up an intraday high of $6,749.54 in the early afternoon. However, the digital coin experienced a sharp drop in the latter part of the session, which erased most of its earlier progress. Bitcoin eventually finished the session at $6,639.14, slightly higher than its opening level of $6,599.71.

Media reports that US payments company Square has withdrawn its application with the Federal Deposit Insurance Corporation for a banking charter likely contributed to Bitcoin’s decline. However, according to the initial report by American Banker, the company plans to resubmit the application at a later date.

“We have been engaged in constructive dialogue with the FDIC, and our decision to withdraw and refile was a procedural step in the review process that will allow us to amend and strengthen some areas of our FDIC insurance application,” a Square spokesperson told American Banker yesterday.

Also yesterday, Fundstrat’s Tom Lee told CNBC that he sees Bitcoin finishing the year at more than $20,000. Since Lee has long maintained a year-end forecast of $25,000, his latest comments were interpreted by some as a signal that he has turned bearish on the leading cryptocurrency. Lee subsequently clarified these comments, admitting that he “may have misspoke a little bit”.

“What I was trying to illustrate was that given where mining costs will be and applying the historical average of 2.5 times mining costs, that would imply fair value over $20,000, roughly $22,000,” he said, as quoted by CNBC. “We still think bitcoin can reach $25,000 by the end of the year or something like that.”

In today’s trading, the Bitcoin price stood at $6,567.44, as of 09:17 BST. The digital coin has lost 1.9% of its value in the past 24 hours.

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