Bitcoin (BTC/USD) continued its slide, falling below $200 for the first time since mid-January. It hit a low of $198 on Bitstamp, capping a slide of 13% during the past 24 hours.
It has since bounced back above $215. Bitcoin had fallen below $200 on a few occasions during the January volatility, but quickly reemerged above the mark each time. On this occasion, bitcoin spent less than an hour below the mark.
Trading over the next week may give a clue if bitcoin has a genuine aversion to dwelling below $200, or if we’re in for a new era of lows not seen in nearly two years.
Bitcoin has now given up as much as 38% since peaking at $318 only one month ago on Greece fears. Undoubtedly, many traders bought in to what appeared at the time to be the next great rally. Those holding leveraged positions since then have faced margin calls, which were responsible for the flash crash on Bitfinex last week.
The Greece fears rattled global equity markets at the time, but are nothing in comparison with the widespread panic seen over the past week. Driven by concerns of slowing China growth and dragged lower by the