Bitcoin fell to over 3 month low on September 25. Analysts blame new Bakkt Bitcoin futures contracts.
After a steep fall of nearly 15 percent on September 24, Bitcoin failed to recover today with some analysts ascribing the weakness to investors' lukewarm reception for a futures product from the owner of the New York Stock Exchange.
The biggest cryptocurrency by market capitalisation, fell to a 3-1/2-month low on Tuesday, a day after the launch of Bakkt's bitcoin futures.
Bakkt, a cryptocurrency platform affiliated with the Intercontinental Exchange Inc, listed the new Bakkt Bitcoin futures contracts on September 23. But volume was underwhelming, analysts said.
ICE is owned by the New York Stock Exchange.
Bitcoin was last down 12.86 percent at $8,436. Earlier, it had hit $7,998, the lowest level since mid-June.
Bitcoin has been on a downtrend in recent weeks. Since early August, it has plunged about 35 percent.
Some market participants said bitcoin's fall was partly due to technical factors, noting that the digital currency has been trading in a descending triangle, a bearish signal.
Bakkt futures not having taken off as expected also does not help, analysts said, even though it is still early. Bakkt was one of the main catalysts cited for bitcoin's massive bull run earlier in the year.
"So what we've got here is a classic case of buying the rumour and selling the news," Mati Greenspan, senior market analyst at social trading platform eToro, said in a note.(with inputs from Reuters)Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.