Bitcoin prices have had a rough week, but things may get better before they get worse.
The world’s largest digital currency has fallen close to 20% over the last seven days, pushing lower as they struggle with several bearish factors.
At the time of report, Bitcoin was trading at roughly $8,800, after falling to as little as $8,370.80 earlier today, CoinDesk Bitcoin Price Index (BPI) figures show.
Even after this modest recovery, Bitcoin was still down roughly 19% from the same time one week ago.
Bitcoin’s ‘Trifecta Of Bad News’
“From a fundamental standpoint the market is still processing a trifecta of bad news,” said Mati Greenspan, senior market analyst for social trading platform eToro.
“The SEC announcement, the Binance incident, and the MT. Gox seller have all weighed heavily on the price,” he clarified.
The effect these developments had on Bitcoin was “exaggerated” because the cryptocurrency markets are dominated largely by fear of missing out (FOMO), asserted Neelabh Dixit, co-founder of digital asset management firm Cryptomover.
Mt. Gox Sale
The Mt. Gox sale, which resulted in the liquidation of more than 35,000 BTC, played a key role in Bitcoin’s recent losses, emphasized Kirill Radchenko, CEO of Paygine, an open blockchain financial platform for fintech and crypto business.
More than $1 billion worth of additional Bitcoin should be sold over the next few months, he stressed.
Flooding the digital currency markets with this Bitcoin will “tank the market,” said Jeff Koyen, CEO of 360 Blockchain USA.
“That’s probably why we’re seeing a sustained, simmering panic,” he added.
Bullish Long-Term Outlook
Even though several analysts struck a bearish tone in the short-term, some market observers predicted that regulatory progress would help strengthen the market for Bitcoin over the long-term.
“Cryptocurrencies are still in the early stages of development. As the market grows, regulatory scrutiny is to be expected,” stated noted Matthew Newton, analyst at eToro.
“Appropriate regulation should ultimately help promote best practice and afford protection to the consumer,” he claimed.