Bitcoin and the wider cryptocurrency market has been searching for direction over the last few days but it’s finally made a move.
The bitcoin price, after taking another failed run at the $10,000 per bitcoin level last week, has shed around 5% in the last 24 hours—dropping to under $9,000 for the first time since late May.
Bitcoin fell to lows of $8,900 on the Luxembourg-based Bitstamp exchange before rebounding slightly.
The wider bitcoin and cryptocurrency market has recorded similar declines, with ethereum, Ripple’s XRP, bitcoin cash and litecoin all losing around 5% and wiping some $10 billion from the combined value of the world’s cryptocurrencies, CoinMarketCap data showed.
The cause of the sudden bitcoin sell-off was not immediately clear, however one cryptocurrency analyst pointed to a period low volatility setting up “big moves” soon.
“[Bitcoin] volatility nearing the [three month] lows,” Edward Morra said via Twitter, adding “we are back to March 7 pre-crash levels” and he’s expecting “big moves this upcoming week.”
In March, bitcoin briefly crashed to under $4,000 amid a wider coronavirus-induced sell-off but rebounded in the run up to its closely-watched May supply squeeze, known as a halving.
Meanwhile, bitcoin has continued to mirror global stock markets as equities in Asia and Europe begin the week in the red.
“Markets around the world have sold off again on heightened fears around a second wave of coronavirus infections and deaths,” said Russ Mould, investment director at broker AJ Bell.
Over the weekend, Beijing recorded a small number of new locally-transmitted coronavirus cases, causing China authorities to reimpose some lockdown measures in the country’s capital.
Despite its latest fall, the bitcoin price is still up around 30% since the beginning of the year, with many bullish members of the bitcoin and cryptocurrency community hopeful the market could return to its all-time highs in 2020.