After reaching a two years’ maximum last week, the price of the cryptocurrency has shown a dramatic fall on most exchanges, having lost nearly $50 in one day and now fluctuating around $703 – 704.

The current figures in fact come as a result of a slight growth after a deeper fall: earlier on Tuesday, the price of the cryptocurrency hit $690. This is a dramatic downslide, given that in the recent days, one bitcoin was worth up to $750 – 770 (and sometimes even $1,000). Once again the exchanges are witnessing the currency’s volatility, although comparing to the previous year, the price is still very high.

The price fall was preceded by a considerable decrease in trading volume, notably on Chinese exchanges. From 18 to 20 June, trading volume on OKCoin, the Chinese cryptocurrency exchange giant, has nearly halved, going from 1.68 million to 914,000 BTC. A similar trend could be observed on Huobi, the figures being respectively 795,000 and 440,000 BTC. As CoinFox reported earlier, Chinese cryptocurrency community is most likely responsible for the recent bitcoin price heave due to the problematic position of the yuan. 

However, the downslide of the cryptocurrency price during the previous similar fall in bitcoin trading volume, which occurred on 15 June, was much less expressed.

Alongside with the price, bitcoin’s market capitalisation is also falling. In comparison to Friday and Saturday record hits, it has decreased by $1 billion. If last week it surpassed the benchmark of $12 billion, now it has come down to $11 billion. However, the market capitalisation changes are following the exchange rate accurately, and the minor price growth on Tuesday morning has been mimicked on the market cap charts. In contrast with the general bear trend, the largest USD/BTC exchange Bitfinex is now showing a growing interest in bitcoin, with more people buying the cryptocurrency than selling it.

Andrew Levich