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Bitcoin could feel the effect of the decline in other global markets this week.
"Overall liquidity [are] suffering as [a] The combination of trade tensions, the tightening of central banks and Brexit is leading to increased correlations between markets, "Fundstrat Global Advisors co-founder Tom Lee told CNBC on Tuesday.
Falling below $ 6,000 earlier and other key technical levels this week triggered "stop losses" for some traders and likely exacerbated sales. This technical data "deteriorated" as Bitcoin support levels were exceeded and cryptocurrency continued to reach lower levels, Lee said.
"Markets around the world are fragile and panic and sentiment play a disproportionate role right now," said Lee, former chief equity strategist at JP Morgan. "Does that mean that bitcoin is broken?" The use case is still there, but in the short term, panic is panic. "
He also discussed the application by the Securities and Exchange Commission of several cryptocurrency projects last week. The SEC announced on Friday its first civil sanctions against the founders of cryptocurrency, as part of a broad campaign of regulatory and legal crackdown on abuse and outright fraud in the country. 39; industry.
Lee and others have alluded to a "fork" in bitcoin money from cryptocurrency. This digital currency, split into two versions last week – "Bitcoin ABC" and "Bitcoin SV" – added a negative sentiment to the crypto markets at large and diverted what is called the "power of hash ".
The decline also follows a warning by Benoît Coeure, a member of the Executive Board of the European Central Bank, to the Bank for International Settlements in Basel. According to Bloomberg News, Coueure has termed it as "demonic creature of the financial crisis" and has agreed with Agustin Carstens, president of the BIS, who called in June crypto-currencies "in a slogan, a bubble, a Ponzi scheme and an environmental disaster".
Clarification: This story has been revised to clarify the summary lines that bitcoin has fallen to its lowest level since September 2017.
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