Investing.com – Bitcoin hovered precariously above $9,000 as traders remained on the sidelines, awaiting further catalysts to determine direction.
Bitcoin fell 2.61% to $9,066.7 on the Bitfinex exchange, battling to stay above $9,000, which some crypto observes said was important as a break below this level could attract further selling.
Bitcoin has traded weaker over recent trading sessions, after it struggled to break above the key psychological $10,000 price level last weekend.
The subdued price action in bitcoin comes against the backdrop of growing institutional demand as the parent company of the New York Stock Exchange (NYSE) was reportedly preparing to launch an online bitcoin trading platform, the New York Times said Tuesday.
The NYSE and its parent company are reportedly developing a proper bitcoin exchange, allowing investors to buy and sell the popular crypto directly, without the involvement of futures, derivatives, and other types of contracts.
That would open the doors to large investors, which many believe is an essential step to legitimize bitcoin as an asset classes. Yet, the entrance of institutional investors, may not be the panacea, many believe, according to a letter published from the San Francisco Federal Reserve earlier this week.
“The subsequent bust was driven by the creation of instruments that allowed pessimistic investors to bet against the housing market,” wrote the Federal Reserve Bank of San Francisco.
Sentiment on cryptos has wobbled as the total market cap of cryptocurrencies fell to $426 billion, at the time of writing, down from about $444 billion on Monday, pressuring other large-cap cryptos.
Ripple XRP fell 3.25% to $0.77218 the Poloniex exchange, while Ethereum fell 2.12% to $735.40.
Bitcoin Cash fell 5.96% to $1,546.20, while Litecoin fell 3.23% to $151.70.