Bitcoin bites: Cryptocurrency closes at three-week low | Coronavirus pandemic News

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Bitcoin even fell 11.3 percent on Thursday and fell below $ 31,000.

Bitcoin hit its lowest level in three weeks as the sizzling rally in cryptocurrency gives way to pessimism that prices are too high.

Bitcoin even fell 11.3% on Thursday and fell below USD 31,000. The largest digital asset has tended to get lower since the $ 40,000 breakthrough, and losses have accelerated over the past two days.

While soaring crypto prices sparked a speculative mania among Robinhood folks, professional investors were also reluctant to buy at the top. Prices are still more than double what they were in early November, and some technical analysts have argued that a retracement is overdue. It was last traded below $ 30,000 on Jan 4th.

“Bitcoin has already achieved the fastest price increase of all indispensable assets to date,” wrote JPMorgan Chase & Co. strategists John Normand and Federico Manicardi in a report on Thursday. “Current prices are so far above production costs that minor reversal in returns is a recurring problem.”

Bitcoin fell 7% to $ 32,467 as of 2:32 p.m. in New York. Prices are on the way to their first weekly decline since early October.

A report on a trade blog added that there has been a so-called double purchase, which uses the same “coin” in two separate transactions. Industry veterans downplayed the thought.

“This is part of the normal operation of the blockchain to enable a highly parallel system,” said Jacob Illum, chief scientist at researcher Chainalysis. “Occasionally the Bitcoin blockchain has competing mined blocks, but only a chain of competing blocks is accepted by the network.”

However, should a double-spend event actually occur, it would be a cause for concern in the market, according to Edward Moya, senior market analyst at Oanda.

According to Matthew Weller, head of research at Gain Capital Group LLC, the chart patterns are consolidating within a “bullish pennant” formation. A sharp rise could push prices above $ 50,000, while a lower rise would indicate a lower retracement below $ 30,000, he predicted.

“It would likely take a bigger decline to break the established uptrend,” Weller wrote in a note.

Despite the sell-off, Wall Street has not lost interest in the new asset class. On Wednesday, BlackRock Inc. filed documents to add Bitcoin futures as an eligible investment in two funds. This is the first time the money manager has offered its clients exposure to cryptocurrency.