Cryptocurrency prices have returned to their bearish behavior in 2015 after showing signs of life for barely a week.
Bitcoin’s (BTC/USD) traded price has fallen by over 10% during the past 24 hours, as have the dollar-denominated prices of most other cryptocurrencies. It is currently trading at $219 on BTC-e, earlier hitting a 1-week low $212 on volume approaching 6,000 BTC/hour.
BTC had been hanging on to its $240 support level for 24 hours before caving in to a glut of selling pressure.
Litecoin’s (LTC/USD) losses have been lighter overall, but did break through $1.70 when the selling came to a climax across the markets. It is currently trading at $1.82. The LTC/BTC rate has remained more stable, in fact climbing slightly by 5% during the past 24 hours.
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In falling to below $230, BTC has now lost more than 50% of its retracement. The prospects of its jump above $300 materializing into a prolonged recovery have therefore waned, and traders and miners will likely have to get used to a bitcoin price stuck in the $200s for the intermediate term.
Few had expected such a sharp decline following the rise to above $300, which is believed to have been motivated by the news of Coinbase launching its bitcoin exchange. The drop confirms that such launches, while perhaps offering traders more choice, do not necessarily increase the value of their supported assets. In the past, post-hype declines sent prices lower than where they started prior to their rise.
The spread between BTC-e and its peers remains above average at $5 (2.3%).