Bitcoin (BTC) Drops Sharply In 2 Hours To Test $7,000

Bitcoin (BTC) just dropped by almost $500 in the past two hours despite general optimism within the industry and positive news our of Asian exchanges.

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Bitcoin (BTC) just dropped by almost $500 in the past two hours despite general optimism within the industry and positive news our of Asian exchanges.

Bitcoin (BTC) Drops Sharply In 2 Hours To Test ,000The market reaction can potentially be attributed to the Goldman Sachs report claiming that they expect Bitcoin price to further decline.

The price decline may also be related to the problematic OKEx futures trade worth $416 million at the time.

Goldman Sachs Report

Goldman Sachs research analyst and strategist published a bearish report on bitcoin (BTC) prices in their midyear Economic Outlook Report.

“Our view that cryptocurrencies would not retain value in their current incarnation remains intact and, in fact, has been borne out much sooner than we expected”

The team further added:

“We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value.”

OKEx $416 Million Futures Trade

OKEx has to forcefully liquidate a massive trade worth an estimated $416 million at the time.

OKEx announced in an official statement that it had injected 2500 BTC into an insurance fund in order to mitigate the problem.

 

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