Bitcoin (BTC) prices decline has come as a result of geopolitical and financial factors, a senior investment executive has suggested.<\/p>\n
In a tweet on Nov. 25, Gabor Gurbacs, digital asset director at investment management giant VanEck, highlighted several causes which, he says, may have forced Bitcoin to lows of $6,500.<\/p>\n
His findings chime with general sentiment over Bitcoin price, which recovered around 11% on Monday to linger around $7,200 at press time.<\/p>\n
Like many, Gurbacs accepted that China reportedly cracking down on cryptocurrency exchanges offering services to its nationals had piled pressure on Bitcoin.<\/p>\n
Specifically, investors saw the risk and opted to exit the market, hoping to buy back in at lower levels.<\/p>\n
I think investors are worried about China crackdown news and hence some second guess their re-entry point and lower prices, he said in another post.<\/p>\n
As Cointelegraph reported, an increasingly popular theory around Bitcoin trading activity focuses on tax obligations.<\/p>\n
In the United States, investors may be attempting to drive the market lower in order to record small or even negative gains on their holdings for 2019.<\/p>\n
Described by Gurbacs as year-end tax-loss arbitrage, it remains uncertain how much participation would be needed to move the market as much as it did in the past week.<\/p>\n
According to Gurbacs, who cited data from Skew Markets, liquidity on Bitcoin trading platforms is facing a significant squeeze.<\/p>\n
This was also a likely product of concern over Chinas policy, he added, something which has traditionally impacted sentiment.<\/p>\n
Bid-offer spreads widest in the past 3 months. Be careful out there. Market can snap fast any direction. Ease into positions. Avoid large\/any market orders, Gurbacs advised.<\/p>\n
A further price trigger may have come in the form of product development and mergers and acquisitions, he said, with many recent examples funded with cryptocurrency.<\/p>\n
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