Bitcoin cheapens again: threats to the first cryptocurrency are growing

Collapsed on Monday amid a sell-off in the markets and a sharp decline in , stocks and oil. The first cryptocurrency tested weekly lows near $10,300.

Bitcoin came under selling pressure early in the week amid declines in traditional markets. Major European indices such as Germany's DAX, France's CAC and Britain's FTSE lost more than 3%. The dollar index, which reflects the exchange rate of the US currency against a basket of major world currencies, rose by 0.7%.

According to analysts, investors are selling stocks due to concerns that a renewed rise in coronavirus cases in Europe could lead to a new economic downturn. A number of European countries, including Denmark and Greece, have already reintroduced quarantine measures; their example may be followed by the UK, ttrcoin wrote.

CryptoQuant CEO Ki Yang Ju attributed the weakening of the BTC exchange rate to the activation of miners, which has been going on since the beginning of August. Mining pools bring cryptocurrency to exchanges for its subsequent sale, which increases the pressure on bitcoin.

On Sunday, exchanges accepted 784 BTC from miners' wallets, which is significantly higher than the last 30-day average of 265 BTC.

Bitcoin could continue to decline if investors move away from risky assets into the dollar as they did in March, CoinDesk analyst Omkar Godbole said.

Billionaire and CEO of Galaxy Digital Mike Novogratz believes that now is the time to invest in bitcoin and other digital currencies. He has repeatedly published posts in social networks with a call to invest in BTC. This time, the financier emphasized that it is possible to buy cryptocurrency at the optimal value by taking advantage of its rollback.

Only 10% Russian investors are ready to invest in bitcoin, according to a survey of more than 4,000 current and potential investors aged 18 to 60 conducted by IDF. The largest share of respondents (22%) prefer to invest in foreign currencies, primarily the dollar and the euro.

"The popularity of altcoins is growing, which can be clearly seen in the decline of bitcoin's dominance index. Many new ambitious players appear on the market, getting at once into the top 30, and sometimes even into the top 10 cryptocurrencies by capitalization, which may well become a threat to bitcoin already in the medium term", - says the team of FxPro analysts.