The price of bitcoin fell below $700 on 21st June, dropping more than 10% in an aggressive correction to recent gains.
The decline came just a day after the price surpassed $780, rising to a fresh 28-month high, CoinDesk USD Bitcoin Price Index (BPI) figures reveal. But while this could be viewed as a positive for the digital currency, investors didn’t quite see it the same way.
The currency appeared “slightly overbought” after reaching the “high 700s,” according to Arthur Hayes, co-founder and CEO of bitcoin leverage trading platform BitMEX.
To some market observers, the trading outage at Hong Kong-based bitcoin exchange Bitfinex, one of the market’s largest exchanges, was seen as the contributing factor that pushed the currency’s decline past $700.
BPI data shows that when the Bitfinex website announced the outage at roughly 9:30 UTC, the digital currency was down approximately 3% for the day. But, by 13:45 UTC, the digital currency had fallen to $649.47, more than 10% below the day’s opening price.
Still, while the outage at a high-profile exchange likely contributed to the day’s developments, others described a more complex situation in which key price indicators proved vulnerable to changes in perception.
One such change came