US Markets

Bitcoin drops to more than 3-month low, briefly trades below $8,000

Credit: REUTERS/MARCO BELLO

Bitcoin dropped around 15% against the U.S. dollar in late trading on Tuesday, hitting a 3-1/2-month low, with some analysts ascribing the weakness to investors' lukewarm reception to the launch of Bakkt's bitcoin futures on Monday.

By Gertrude Chavez-Dreyfuss

NEW YORK, Sept 24 (Reuters) - Bitcoin dropped around 15% against the U.S. dollar in late trading on Tuesday, hitting a 3-1/2-month low, with some analysts ascribing the weakness to investors' lukewarm reception to the launch of Bakkt's bitcoin futures on Monday.

Bakkt, a cryptocurrency platform affiliated with the Intercontinental Exchange Inc ICE.N, listed the new Bakkt Bitcoin futures contracts on Monday. But volume was underwhelming, analysts said.

ICE is owned by the New York Stock Exchange.

The largest cryptocurrency by market capitalization was last down 12.86% at $8,436. Earlier, it hit $7,998 BTC=BTSP, the lowest since mid-June.

Bitcoin has been on a downtrend in recent weeks. Since early August, it has plunged about 35%.

Some market participants said bitcoin's fall was partly due to technical factors, noting that the digital currency has been trading in a descending triangle, a bearish signal.

Bakkt futures not having taken off as expected also does not help, analysts said, even though it is still early. Bakkt was one of the main catalysts cited for bitcoin's massive bull run earlier in the year.

"So what we've got here is a classic case of buying the rumor and selling the news," Mati Greenspan, senior market analyst at social trading platform eToro, said in a note.

(Reporting by Gertrude Chavez-Dreyfuss Editing by Leslie Adler and Dan Grebler)

((gertrude.chavez@thomsonreuters.com; 646-223-6322; Reuters Messaging: gertrude.chavez.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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