Following bitcoin’s failure to get a Bitcoin Pizza Day bump, the leading cryptocurrency on Tuesday saw its price drop back below the $8,000 level.
On Monday, the bitcoin price slightly rose above $8,600, making investors believe it will recover back towards the $9,000 level. Unluckily, the cryptocurrency was unable to make this recovery and the bitcoin price was trading close to $8,400 on Tuesday morning and sustained the drop for the entire day.
The bitcoin price dropped below $8,000 and it sharply dropped as low as $7,943 before once again hitting its present value of $7,968, signifying a daily decline of close to five percent.
The leading cryptocurrency did not go through this significant decline for no just reason. The overall cryptocurrency market cap went through a decline by an estimated $18 billion for the day, dropping from $381 billion on Monday to $363 billion at the time of writing.
The market declined has been partly as a result of several reasons such as a scandal involving South Korea’s two leading cryptocurrency exchanges, Bitfinex’s release that it will share some user’s tax data with the government, and the opinion that the trustee of the Mt. Gox estate has started selling more of the bankrupt exchange’s cryptocurrency holdings.