Bitcoin hovered above $9,000 as traders have remained on the sidelines awaiting further changes to determine their direction.
Bitcoin fell at about 2.61% to $9,066.7 on the Bitifinex exchange as they battle to stay above $9,000 which some crypto observers identified to be on an important level as a break below that could further attract their selling.
Bitcoin has already traded a weaker over recent trading sessions, as it has struggled to break above the key price level of $10,000 last weekend.
The subdued price action in bitcoin goes against the backdrop of growing institutional demand as the major company of the New York Stock Exchange (NYSE) that was reportedly preparing to launch an online bitcoin trading platform as stated by the New York Times on Tuesday.
The NYSE and its parent company were also reportedly developing a proper bitcoin exchange that allows investors to buy and sell the popular crypto directly without the involvement of other types of contracts.
As this would open doors to large investors, like many believe is an essential step to legitimize bitcoin as an asset class. According to a letter published from the San Francico Reserve, even so the entrance of institutional investors may not be the panacea like many believe.
“Similarly, the advent of blockchain introduced a new financial instrument, Bitcoin, which optimistic investors bid up, until the launch of Bitcoin futures allowed pessimists to enter the market, which contributed to the reversal of the Bitcoin price dynamics,” as said by the Federal Reserve Bank of San Francisco.
Each sentiment on cryptos has shaken as the total market cap of cryptocurrencies fell up to $426 billion and now down from about $444 billion since Monday that puts the pressure on other large-cap cryptos.
The Ripple XRP fell 3.25% to $0.77218 the Poloniex exchange, in a similar way that the Ethereum fell 2.12% to $735.40. Furthermore, Bitcoin Cash fell 5.96% to $1,546.20, just as Litecoin fell 3.23% to $151.70.