Bitcoin plunged 7% to close to $35,500, reminiscent of the level of the cryptocurrency crash last week as traders prepare for the new volatility of the long weekend.
As the governor of the Bank of Japan Haruhiko Kuroda joins more and more central bank governors, expressing doubts about the utility of the industry in the real world, the price of digital tokens has been hit.
Now, retail players will dominate the upcoming trading session when the transaction volume is usually low.
Ipek Ozkardeskaya, a senior analyst at Swissquote, said: “Looking at the turmoil of the entire crypto market, we may see that the weekend trading of Bitcoin and other cryptocurrencies will become busy again.”
Prices soared by 10% last Saturday, and plunged by 18% the next day.
“Most of the transactions are speculative, and volatility is very high,” Kuroda said in an interview on Thursday. “It is hardly used as a solution.”
Nonetheless, after falling 44% from its peak of $63,000 in April, Bitcoin has hardly changed this week.
More broadly, the threat of stricter regulation continues to drag down cryptocurrency market sentiment. China and Iran have cracked down on Bitcoin mining operations that use too much electricity, and there are speculations that in view of the expanding market size and volatility, U.S. policymakers may strengthen financial supervision.
Swissquote’s Ozkardeskaya stated that at the technical level, the key indicator is $30,000. She said that a break below that level would “further confirm the continuation of the bear market.”
“Volatility has eased this week, but this may not continue into a long weekend,” Edward Moya, senior market analyst at Oanda Corp., wrote in a report. “Bitcoin’s integration phase should continue, but if the $37,000 level breaks through momentum, it may quickly become ugly.”