Selling intensified for digital currencies on Friday, as the price of the No. 1 cryptocurrency bitcoin fell below $9,000 to end a woeful week.
The price of a single bitcoin
fell 3.6% to $8,981.03, but bounced off a low of $8,370.80, according to CoinDesk. For the week, bitcoin was down around 20%.
Other cryptocurrencies followed bitcoin lower. Ether is down 0.1% at $702.72, bitcoin cash is off 2.6% to $1,010.38 and Litecoin, after dipping to $160.43, is back in the green, up 6.2% at $188.28, according to CoinDesk.
Ripple, after falling 10% has recovered to be unchanged on the day at $0.83, according to CoinDesk.
The continued slide in bitcoin comes after a sharp drop on Thursday, which some suggested were due to technical factors.
“If prices firm up over the next few days, then we are back on track and higher prices are ahead of us. But if we cannot bounce back over the next couple of days, we might test lower prices before the bigger rebound resumes,” said Jani Ziedins on his Cracked Market blog.
— Peter Brandt (@PeterLBrandt) March 9, 2018
Others suggested regulatory worries could be rattling investors. On Wednesday, the Securities and Exchange Commission warned investors about investing in non-regulated and exchanges and called for tighter restrictions across all trading avenues.
And see: This is what it feels like to get completely gutted by your crypto investments
However, some believe the selloff will be short lived, with most of the downward pressure a result of flow driven supply.
“The Mt. Gox liquidations, in our view, are actually a short-term (but painful) overhang,” said Tom Lee, managing partner at Fundstrat Global Advisors in a research note.
“But we see this as a short-term issue,” Lee said, saying he believes once the funds are distributed from the liquidation the creditors will reinvest in the cryptocurrency market.
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Futures markets tracked spot prices lower. The Cboe Global Markets March contract
closed down 3.2% at $9,135, while the CME Group Inc. March contract
finished at $9,015, down 4.1%.