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Bitcoin has lost another key level on its way down, as the market shares a bearish sentiment unseen for quite some time.
According to Bitstamp prices, bitcoin dropped as low as $89,649 on Monday night, reaching its lowest number in seven months and turning year-to-date performance numbers negative.
While the downturn has been hard, analysts have failed to pinpoint a clear cause for the drop, as many still believe there has been significant positive news for bitcoin and crypto this year and that such a fall is undeserved.
Nonetheless, the current fear of an artificial intelligence (AI) bubble in the market, an upcoming liquidity crisis, holes in the balance sheet of some market makers, and the still undecided stance of the Federal Reserve on interest cuts are mentioned as possible causes of this price movement.
Known bitcoin critic and gold bug Peter Schiff celebrated the fall, stating that bitcoin was down 40% priced in gold. “ Bitcoin’s collapse relative to gold exposes the digital-gold hype as a fraud. Those who bought into it will sell,” he declared.
Even so, bitcoin bulls are unfazed by this fall, as bitcoin fundamentals have not changed and are still relevant.
Matt Hougan, CIO of Bitwise, pointed out that positive bitcoin news is being suppressed in favor of the uncertain macroeconomic backdrop, pushing bitcoin into the back seat. In a recent interview, he stated that after this suppression is removed, bitcoin will become a coil spring that can reach up to $200K by year’s end.
In the same fashion, Gemini co-founder Cameron Winklevoss predicted that this will be the last time anyone will be able to purchase bitcoin below $90K.
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