The price of bitcoin fell $100 during a five-hour span today, dropping 15% to reach a low of $551 on the CoinDesk Bitcoin Price Index (BPI).
The move represents a continuation of the recent price correction that began when bitcoin hit a high of $774 on 18th June, a move market observers suggested indicated the digital currency was “overbought” after reaching two-year highs.
Such a sentiment continued to be voiced by market observers today following the day’s sharp price drop, with blockchain advisor and consultant George Samman indicating the currency’s value increased “too fast” this month, and that as a result, price support is now weakening.
Still, sources suggested that the decline is a response to the increasing likelihood that the UK will likely vote to stay in the European Union (‘Bremain’), an outcome that could be made official as soon as late Thursday night in US, Friday morning UK time, reports suggest.
The comments echo the widely held belief that bitcoin is a “safe haven” asset that benefits from times of macroeconomic uncertainty in which its strengths as an investment vehicle whose value is derived solely from a global market are best on display.