The relentless selling in Bitcoin (BTC) continues as the price of the largest cryptocurrency falls below the key support level of $70,000 U.S.
Bitcoin was trading at $69,500 U.S. in early trading on Feb. 5 as investors continue to rotate out of risk assets and seek safety in blue-chip securities and value stocks.
Some analysts say the move below $70,000 U.S. is a bad omen for Bitcoin and could trigger further declines in the coming days and weeks.
Several analysts say they are now eyeing support and a potential bottom for Bitcoin at $60,000 U.S., though when the decline in cryptocurrencies will end is not known.
The latest move lower in Bitcoin’s price comes amid a broad selloff in technology stocks as investors exit richly valued securities tied to the artificial intelligence (A.I.) trade.
Additionally, liquidations, when an investors’ position is automatically sold as Bitcoin falls to a certain level, continues to wreak havoc on the cryptocurrency market.
This week alone, more than $2 billion U.S. in cryptocurrency positions have been liquidated, according to data from Coinglass.
There also continues to be heavy selling of Bitcoin among institutional investors and exchange-traded funds (ETFs) that track the spot price of BTC.
Bitcoin has been on a steady decline after reaching an all-time high of $126,000 U.S. last October. The largest cryptocurrency by market capitalization is down more than 40% since then.
