Digital currencies lost ground Wednesday as overall market sentiment waned, pushing the price of bitcoin back under $11,000.
After trading above $11,700 late Tuesday evening, the price of the No. 1 digital currency by market cap, bitcoin BTCUSD, -11.39% lost more than $1,500, trading to a session low of $10,244.32 before trading at $10,324.41 on Wednesday afternoon, down 8.1%.
After nearly doubling in price since the Feb. 6 low of $5,947.40, traders have begun dumping some of their holdings, market participants said.
“This rebound took a lot of pressure off of BTC owners, but we will start running into overhead resistance,” Jani Ziedins of Cracked.Market said in a research note, referring to trading levels that market technicians view as points where selling tends to be triggered.
“Many premature dip-buyers jumped in between $12k and $15k and we should expect many of those regretful owners to sell when they can get their money back. Their selling will slow the assent over the near-term,” he said.
The news was no better for other major digital currencies. Ether slipped to a one-week low, falling 6.3% to $836.63. Bitcoin cash was down 7.2% at $1,322; Litecoin was lower by 9.2% at $211.88; and Ripple’s XRP coin was trading at $1.02, down 5.9%, according to news and research firm CoinDesk.
In other developments, the persistent debate about the utility of cryptos got its latest critic when Bank of England Gov. Mark Carney said bitcoin had “pretty much failed” as a currency.