Bitcoin, the flagship cryptocurrency has fallen below $8,000 taking a sharp dive on Monday evening. The price of the coin has failed to clear the $9,000 psychological barrier and has since bored to bearish pressure losing close to 10% in a couple of hours. Bitcoin, which was trading at about $8,590 at 23:00 UTC late Monday evening, corrected to $7,950 a few hours later marking a massive 7.5% fall. The price is now struggling to claw its way back above $8,000.
As expected the selloff was accompanied by a rise in trade volumes with Messari, the blockchain analytics service provider reporting 24-hour volumes for Bitcoin as a high of $23.06 billion. The “Real 10” volume for Bitwise’s 10 identified exchanges with verified trade volumes stands at $1.466 Billion over the same 24 hours.
The Monday evening sell-off represents the biggest price correction in the last two weeks according to consolidated Bloomberg pricing. This follows the recent Bitcoin price rally to levels above $9,000 on May 30th, albeit briefly. The bullish pressure did not sustain the price above $9,000 for long. So far in June, the price of Bitcoin is down 6% as technical analysts expect more correction in the coming days.
The overall cryptocurrency market has not fared on well with most of the top 20 coins registering loses in the 5-15% percentage range. Only Cosmos [ATOM] is in the green with a 2% gain over the past 24 hours. The cryptocurrency market has lost about $20 billion in the past 24 hours keeping up with the Bitcoin price trend.
Speaking to Fortune, Timothy Tam, co-founder, and chief executive at CoinFi, a cryptocurrency research firm in Hong Kong said that Bitcoin “just got a little bit extended, this is a healthy retracement. There’s quite a lot of volume going through, this is normal Bitcoin volatility. At the end of the day, it still doesn’t take a lot of money to move these markets compared with traditional markets.”
Ethereum, the leading altcoin is down about the same percentage points as Bitcoin. The greatest loser in the top 20 rankings according to Coinmarketcap is EOS followed closely by Cardano and Tron with all registering 12.66%, 12.62%, and 12.26% loss in the last 24 hours respectively. EOS announced the launch of its highly anticipated social media platform Voice over the weekend. Prior to the launch of Voice, the price of EOS rose steadily to a yearly high but fell sharply on the news of the launch, a classic ‘Buy the rumor and sell the news’ scenario.