Bitcoin price dropped sharply on Monday as the world’s largest cryptocurrency by market cap continues to face headwinds.
According to data from Coinmarketcap, bitcoin price fell 4.77 percent to hit a low of $6,734.76 as of 10:42 a.m. ET Monday.
Bitcoin has lost half of market value since the beginning of this year. The price of bitcoin was down more than 50 percent. Some analysts said the decline in bitcoin price this month was due to tax-related selling.
According to CNBC, Thomas Lee, head of research at Fundstrat Global Advisors, said in a Thursday report: "This is a massive outflow from crypto to USD and historical estimates are each $1 of USD outflow is $20-$25 impact on crypto market value. Additionally, we believe there is selling pressure by crypto exchanges who are subject to income tax in U.S. jurisdictions.”
Increasing regulation toward cryptocurrency is also one of the key driver of the sell-off. The SEC has cracked down on the initial coin offerings, or ICOS.
“Granted, no technical breakthrough has yet been achieved by the bulls, but this is nonetheless a tentative bullish sign which points to waning selling pressure.” wrote Fawad Razaqzada, technical analyst at Forex.com, according to MarketWatch.
The total market capitalizations of all cryptocurrency was about $257 billion now.