Bitcoin has now lost more than 20 percent of its value over the last 5 trading sessions, trading today back below the $10,000 mark and one analyst believes the developments in the trade negotiations between China and the US may a major reason behind the fall.

In the first 10 days of August, bitcoin racked up solid gains as tensions between the world’s 2 biggest economies grew with US President Donald Trump threatening to impose more tariffs on all other goods from China starting September 1st entering the US which saw investors direct their money towards bitcoin as some sort of safe haven.

Trump has now agreed to delay the new tariffs until December so talks can resume, and this has given some hope that a compromise can be reached which saw traders exiting bitcoin and also gold.

"Now that trade tension with China has eased, the pressure on the yuan is off," Schiff said. "Those who bought bitcoin to speculate on Chinese safe haven buying, which never happened, are taking their chips off the table." Noted investor and chief executive of Euro Pacific Capital Group, Peter Schiff.

Another reason behind the fall may be the actions of regulators, and especially the SEC in the US who are stepping up plans to enforce current and introduce new laws surrounding bitcoin in light of the new market players about to enter the market and this is making investors nervous because nobody knows what will come next.

“It is without doubt that with the announcement of Facebook's libra, governments, regulators and central banks around the world have had to expedite their plans and approach to digital assets,” said Dave Chapman, executive director at BC Technology Group.

“The likes of libra and Walmart's digital currency could dramatically disrupt finance and payments” he added.

Activity of FIBO Group, Ltd. Company is regulated by the Financial Services Commission (FSC), registration number of the licence: SIBA/L/14/1063.

Trading on Forex market implies serious risk including the risk of loss of all the funds invested. Please, take into account that trading on the forex market isn’t suitable for all investors and traders.

Unfortunately the services of the company aren’t provided to residents of Austria, Great Britain, Iraq, North Korea and the USA.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD trades around 1.1100 amid the Italian crisis, ahead of Fed minutes

EUR/USD is trading around 1.1100, in familiar ranges. Italian President Mattarella will explore if a new government can be formed after PM Conte resigned. The FOMC Minutes are eyed later in the day.

EUR/USD News

GBP/USD leans lower ahead of the Johnson-Merkel meeting

GBP/USD is trading below 1.2150, losing some ground. UK PM Johnson will meet German Chancellor Merkel in Berlin after the latter called for finding practical solutions on the Irish backstop.

GBP/USD News

USD/JPY: Bulls re-take 106.50 amid higher S&P futures, Treasury yields

Following a temporary reversal seen on Tuesday, the USD/JPY pair resumes the bullish momentum in Wednesday's Asian trading and regains the 106.50 level, tracking the gains in the US Treasury yields and S&P 500 futures. 

USD/JPY News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Critical technical levels cryptos need to overcome after the summer slide

Late August is vacation time in the northern hemisphere – and cryptocurrency bulls may be at the beach as well. Tuesday's slide in prices lacks clear triggers and perhaps shows some fatigue or profit-taking.

Read more

Gold slips below $1500 mark amid improving risk sentiment

Gold edged lower through the early European session on Wednesday and is currently placed at the lower end of its weekly trading range, just below the key $1500 psychological mark.

Gold News

Majors

Cryptocurrencies

Signatures