Bitcoin (BTC) Price Dips Below $6K Support; Xapo President Claims Imminent Altcoin ‘Extinction’
Bitcoin (BTC) prices hit levels below $6k on Tuesday, reaching prices that were also last seen at the end of June. The top coin dropped to those levels before a fightback on Wednesday morning saw it trade above $6,200 again.
The latest slump in BTC value came on the back of a bearish market punctuated with a resilient sentiment from the general crypto community.
Data from market aggregator XBT.net painted a state of decline for most cryptocurrencies, coming as no surprise over the last several days.
Bitcoin fell by over 6% in the daily trading session, with further declines threatening as the rest of the market took a hit. BTC/USD hit a low of $5,971 before a slight upside took it to $6,199 at close.
At the same time, all the major altcoins had their prices falling by double figures, some losing as much as 20 percent within 24 hours.
At the moment, Bitcoin (BTC) is trading in the green in the 24 hour period, gaining over 4 percent. However, it is still nearly 3 percent in the red for the week. Its price is well above $6,300 and has moved above the key support area at $6,100.
BTC price decline in August
Bitcoin has seen its price take a hit for much of August. The BTC/USD pair experienced a price surge in July that took it to prices near $8.5k. However, that has not been the case in August, with prices falling to live investors with just 3 percent in gains.
But the scenario is far worse for most altcoins. For example, the second largest coin Ethereum has seen its price decline by as much as 40 percent in the last one month.
When BTC fell to $5,971 on Tuesday, ETH/USD lost nearly 16 percent in 24 hours. The coin’s losses over the week hit nearly 35 percent.
Ethereum has since experienced a slight upside with over 7 percent gains in the last 24 hours. Despite this, ETH/USD is still trending south over the weekly period with over 22 percent in the red.
In the top ten lists of major coins, only Stellar (XLM) is trading in the green over both the daily and weekly charts. XLM/USD is trading over 3 percent higher in both trading periods.
The rest of the altcoins are trading double digits in the red in the last seven days.
Altcoin ‘extinction event’?
The majority of the crypto community remains optimistic about Bitcoin, with many holding that it will repeat the bull run that saw it peak at prices near $20k.
However, the picture for altcoins is quite different. At the moment, the top coin has its market dominance at over 53 percent.
Even though BTC gains would trigger upsides for altcoins, some analysts believe many are likely to disappear altogether.
Ted Rogers, the president of Xapo, has said that the current market conditions could be a trigger for an “extinction-level event” affecting cryptocurrencies.
According to him, “90%+ of CoinMarketCap list will disappear eventually – might as well happen now.”
Meanwhile, he believes the decline in BTC prices is a great opportunity to buy low and buy more.