Bitcoin plunged below $8,000 on Thursday, hitting its lowest level in nearly a month.
The biggest cryptocurrency has dropped for seven straight days as investors have funneled money into mainstream assets.
"Volumes are low, no new money is coming into the ecosystem, and stocks/bonds/gold are all up double-digits year-to-date, which makes the non-crypto world lose focus on this emerging asset class," Jeff Dorman, the head of investment at asset manager Arca, told Bloomberg.
"The downward pressure is being caused by a divergence of investment strategy across all asset classes, which has created indecision and cautiousness," Luno CEO Marcus Swanepoel wrote in a note earlier this week.
Mainstream rejection of cryptocurrencies could also be fueling the sell-off. Chinese regulators are cracking down on companies trading digital currencies, and Chinese social-media giant Weibo banned crypto giants Binance and Tron, according to Bloomberg.
PayPal's former president and tech investor Roelof Botha said Bank of America closed his account with "absolutely no explanation," sparking conspiracies he was banned for trading cryptocurrencies. Moreover, R3 CEO David Rutter reportedly said Facebook's rollout of its Libra digital coin was "ridiculously stupid."
Bitcoin was down about 2.5% at $7,900 at the time of writing — a sharp decline from the $13,000 mark it hit in late June, and a fraction of its all-time high of around $20,000.
Source: Markets Insider