The price of Bitcoin fell from $ 6,914 to $ 6,349 in just one hour on September 6. It was not until September 5, we’ve noted that around 11:00 WET that the BTC rate crashed back to the $7,000.
After plummeting on September 5, BTC was able to keep for almost 24 hours the $ 7,000 support before breaking to the next line of support of $ 6,600. Currently, the Bitcoin price has a daily drop of 13 percent.
Many people have placed the blame on two major events. It is speculated that the drop in price could be linked to significant money movements of wallet address coming from Dark Web’s Silk Road.
Another reason for the current dump may be due to a report from Goldman Sachs. The Business Insider reported on September 5 that the investment giant has hinted that it would put its plans for a cryptocurrency trading desk on hold for the moment
The report goes on and says that the decision that prompted Goldman Sachs to back down was related to the unclear regulatory environment; the company also explained that its primary focus would be on custody services instead of cryptocurrency trading.
What’s up with Bitcoin?
Shockingly, the current price drop matches the forecast Goldman Sachs made in August, which predicted further price losses. In the half-yearly report, the investment giant pushed the idea of bitcoin being unable to act as a currency. Also from a technical point of view, they have stated that everyone should prepare for further losses. The fact that the Bitcoin price broke the support of $6,600 activates the scenario in which BTC might test the $6000 territory.
After a good run in the past weeks, the altcoins are suffering too. Ethereum saw a dramatic loss of 20 percent in 24. At the moment the price of ETH is at around $225 with a continuous decrease of almost 45 percent since the beginning of August. Another big loser is ripple (XRP) with a drop of nearly 15 percent in the last 24 hours and a price index of $0.28.