Bitcoin has continued taking losses over the past week and has now edged closer to breaking below the $6,000 mark. A price that many analysts are considering to be the new lower support level of BTC’s valuation. What makes things worse, is with every new piece of negative news, with companies coming under investigation for potentially manipulating the price of the top cryptocurrency late last year with the help of another cryptocurrency called Tether. There is some evidence to suggest that the Bitfinex exchange kept trading after cutting ties with the appropriate banking institutions and began operating in a legal grey area.
This issue is made worse by the lack of very many positive news stories coming out of the community. Scams, hacks, thefts, and bearish sentiments have created an atmosphere of negativity, which has caused many holders of the coin to want to sell. According to the Oanda Corp senior market analyst, Craig Erlam,
“There doesn’t seem to be as much hype or positive news. Every time we get a negative news story now – after a period of consolidation – we don’t see bullish sentiment come in to support it. It’s almost as if people are waiting to sell it.”
It seems that the larger public has lost their interest in the blockchain and cryptocurrency space. The mainstream media has not been covering it like they were at the end of 2017 when the price was booming. This leads me to believe that the ominous effect the media coverage has on the market is what determines the reaction from the public, instead of the public’s reaction creating the news.
Hopefully, if bitcoin does end up falling back below $6,000 then it will trigger many investors to buy back in at lower levels. That is, I there is something for them to look forward to and see the potential of their investments at the lower levels, otherwise, the possible criminal activity by Tether, Bitfinex, and other actors could drive more people away from this market and squander the potential for real growth.