September 6 proved to be a bad day for Bitcoin (BTC) as the trading price of the largest cryptocurrency saw another dip in price.
Bitcoin Fell Below $19k
If the price of Bitcoin falling below $20,000 was not bad enough on September 5, the situation has gotten worse on the following day.
The trading price of Bitcoin ended up falling below $19,000 on September 6. It was the lowest price Bitcoin ended up hitting in the past 80-days.
From the month of July until August 15, the trading price of Bitcoin recorded a 32% surge in value. However, the recent dip has taken away the entire surge Bitcoin had recorded in the said period.
In simple words, the entire rally achieved by Bitcoin from July until mid-August was erased in a matter of hours. Even the futures contracts that were purchased by users with intentions of long-term leverage were also lost.
To be precise, the particular futures contracts lost on September 6 were worth $246 million.
Comparison with Other Assets
It is worth noting that from the beginning of the year until now, it is one of the lowest prices Bitcoin has hit.
Since the month of July, the trading price of Oil has also suffered a demise. In the global market, the trading prices of oil have suffered a 23.5% dip from the month of July until now.
Then come the share prices for other companies such as Palantir Technologies which have recorded a 36.4% dip in the past 30-days.
The pharmaceutical sector has also recorded a dip as one of the major companies Moderna has recorded a 30.4% dip from July.
The reason why every trading sector has suffered a demise is because of the inflation pressure that has been rising as every day passes.
Then comes the fear of recession that is to engulf the entire globe according to economists from around the world.
Due to the constantly rising fear, investors are stepping back from their investments. They are not willing to take the risks they were open to taking, back in the day.
What is going to Happen to Bitcoin?
The future of Bitcoin is completely in the hands of the investors for now, as there is nothing that crypto firms can do to increase their demand.
Crypto investors want to see positive data come out of the economy such as stronger NFP and weaker than expected inflation rates. This would boost the morale of the investors and give them the confidence to push harder.
If that happens, then investments may start coming back to Bitcoin and it may be able to cross the $20k mark and then the $25k mark.