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Bitcoin Drops 7.67% After Seeing Largest Rise Since May: Possible Reasons

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Mon, 08/02/2021 - 13:50
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Yuri Molchan
The largest digital currency has dropped after posting the biggest rise in three months, here are the likely reasons for it
Bitcoin Drops 7.67% After Seeing Largest Rise Since May: Possible Reasons
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The world's flagship cryptocurrency has been declining since it reached a peak of $42,559 on Aug. 1, dropping almost eight percent by now.

On Monday in particular, it has dipped 5.6 percent, hitting $39,280 in New York. The overall decline since Aug. 1 totals 7.67%.

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Image via TradingView

Altcoins, including the second-biggest crypto, Ethereum, have also gone down a little. The chief of the Asia Pacific region at digital exchange Luno (owned by Barry Silbert's Digital Currency Group), Vijay Ayyar, believes this is a regular correction that is following a bullish price action.

In the past few weeks, Bitcoin's rise has been fueled by positive comments from Tesla CEO Elon Musk given during the B-Word Zoom conference, in which he discussed Bitcoin and its prospects with Jack Dorsey and ARK CEO Cathie Wood.

Wood's supportive narrative for Bitcoin is also a likely reason for the price to go northward.

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According to the Luna CEO, one of the possible reasons for Bitcoin's recent decline, apart from it being a natural correction, is the recent initiative of the U.S. Senate to impose harsher taxation rules on crypto investors and traders.

In addition, China has stated that it will continue to clamp down on cryptocurrency traders and exchanges.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.