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Bitcoin Continues on Rollercoaster Ride, Sheds $400 to fall below $9,000

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Bitcoin (BTC) and ethereum has struggled to move up ever since the former’s failed test of the $10,000 support level and the postponed hearing of the latter last May 7.

However, a lot of tokens such as Ziliqa (ZIL) and 0x (ZRX) have done better than both cryptocurrencies, showing gains of over 20%.

Earlier this week, the Federal Reserve published a report that took note of the launch of BTC futures negatively affecting bitcoin price, and that BTC has not been able to keep its momentum going since CME and CBOE introduced bitcoin futures to the US market.

“The peak bitcoin price coincided with with the day bitcoin futures started trading on the CME… we argue these price dynamics are consistent with the rise and collapse of the home financing market in the 2000s,” related the Federal Reserve of San Francisco.

Experts have fired back, saying that BTC futures have let institutional investors and retail traders to control the BTC market by shorting the cryptocurrency and selling massive quantities of bitcoin contracts to cash out their short contracts.

As such, the cryptocurrency community did not have the warmest reaction to the entry of the New York Stock Exchange (NYSE) to the cryptocurrency market, until reports unveiled that the parent company of NYSE has been developing a proper BTC exchange, and not a futures market.

The last three days has seen BTC price recovering from $9,000 to $9,300. However, after trading at $9,360 on early Friday morning, the price of BTC has shed more than $400, exchanging at $8,931 as 8:31 a.m. UTC for a loss of 4.37% over the last 24 hours.

In spite of the dip, analysts including Wall Street’s Fundstrat founder Tom Lee shared his optimism towards bitcoin in the short-term especially since a lot of institutional investors and traders would be encouraged to invest in the market with the commencement of the Consensus Conference, a huge cryptocurrency gathering.

“Already one of the largest crypto conferences in the world, attendance this year is up dramatically and coming at a time when Bitcoin/Crypto is down YTD. Hence, we expect the Consensus rally to be even larger than past years,” said Lee.

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