Bitcoin price's decline has come as a result of geopolitical and financial factors, a senior investment executive has suggested.
In a tweet on Nov. 25, Gabor Gurbacs, digital asset director at investment management giant VanEck, highlighted several causes which, he says, "May" have forced Bitcoin to lows of $6,500.
His findings chime with general sentiment over Bitcoin price, which recovered around 11% on Monday to linger around $7,200 at press time.
Like many, Gurbacs accepted that China reportedly cracking down on cryptocurrency exchanges offering services to its nationals had piled pressure on Bitcoin.
Specifically, investors saw the risk and opted to exit the market, hoping to buy back in at lower levels.
As Cointelegraph reported, an increasingly popular theory around Bitcoin trading activity focuses on tax obligations.
In the United States, investors may be attempting to drive the market lower in order to record small or even negative gains on their holdings for 2019.
Described by Gurbacs as "Year-end tax-loss arbitrage," it remains uncertain how much participation would be needed to move the market as much as it did in the past week.
According to Gurbacs, who cited data from Skew Markets, liquidity on Bitcoin trading platforms is facing a significant squeeze.
"Bid-offer spreads widest in the past 3 months. Be careful out there. Market can snap fast any direction. Ease into positions. Avoid large/any market orders," Gurbacs advised.
4 Possible Reasons Bitcoin Dropped to $6.5K, According to VanEck Exec
Published on Nov 26, 2019
by Cointele | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.