The Bitcoin price (BTC/USD) continues to struggle, trading below the key level of $7,000.
The original cryptocurrency saw a sharp decline in late Sunday trading, falling to a two-month low of $6,709.07. While the digital coin has since managed to recover some of its losses, it hasn’t been able to gain enough momentum to sustain a meaningful rally.
Bitcoin had a positive session yesterday, rising to an intraday high of $6,910.18, from its opening level of $6,799.29. The digital currency closed the session at $6,906.92, but it slipped again below the $6,900 mark in today’s early trading.
At the time of writing, the Bitcoin price was hovering around $6,870, according to data from cryptocurrency tracker Coinmarketcap. It had fallen to an intraday low of $6,847.17.
Some have attributed the Sunday slump, which affected not only Bitcoin, but the entire digital currency market, as well, to news that minor South Korean Coinrail has been hacked. Others, however, have expressed doubts over whether one relatively insignificant hack could have caused the massive sell-off observed on Sunday.
"The hack in South Korea may have fired the starting gun on yesterday’s price drop," EToro analyst Matthew Newton told Forbes yesterday.
However, he also noted that the “major fall” had happened later in the day, when "there was a surge in volume as potentially a large sell order was dumped on the market".
"Currently there is no indication of what caused this, but it certainly seems to have accelerated the drop," Newton said.
According to Charles Hayter, co-founder and chief executive officer of cryptocurrency data platform CryptoCompare, the slump was partially a delayed reaction to the Friday report by The Wall Street Journal that the US Commodity Futures Trading Commission had demanded that four cryptocurrency exchanges – Coinbase, Bitstamp, itBit and Kraken – hand over trading data to assist a probe into price manipulation
In today’s trading, the Bitcoin price stood at $6,875.89, as of 09:59 BST. The digital currency has gained 1.2% in the past 24 hours.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.