Bitcoin sank to its lowest level in six months amid concerns about a crackdown on cryptocurrency operations by China.
Bloomberg reports it is the first time since May that Bitcoin traded below the key $7,000 psychological level.
“Bitcoin’s price remains under pressure, especially as the China-hype-driven speculative surge unravelled,” Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, told Forbes.
“Moreover, the recent China-Binance FUD (the spreading of “Fear, Uncertainty, and Doubt”) also dampened market sentiments considerably,” he added.
Going forward, Bitcoin may be in for additional downside, according to technical analysis provided by Jon Pearlstone, publisher of the newsletter CryptoPatterns.
China previously said it wants a state-issued e-currency.
The New York Times previously reported that this would give the government widespread new powers to fight crime and manage the economy, while also raising privacy concerns.