The price of bitcoin on the CoinDesk USD Bitcoin Price Index (BPI) dropped below $500 today.
At 2.30pm UTC, the price had fallen nearly 9% to $496.27, its lowest level since 21st May, when concerns about restrictive regulation in China were widespread.
Notably, the decline below $500 was short lived, with the BPI quickly rebounding over the $500 mark to reach $512.26 at press time.
No clear cause
Though no one news event could clearly be linked to the price decline, speculation was rampant on Reddit and other bitcoin community mainstays as to what factors were contributing to the market decline.
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However, WSJ acknowledged that uncertainty over US regulation may have also been a contributing cause.
, Spectro Coin co-founder and CEO, told CoinDesk he believes all three events to be contributing factors, though he said Bitstamp might have been the most important of the three, adding:
Speaking to CoinDesk, Shawn Sloves, CEO of global bitcoin exchange network Atlas ATS offered a different take. He suggested that overall saturating in the bitcoin exchange market remains a contributing factor. New York regulation, regardless of the form in which it passes, will be a boon for the industry, he added.
China's markets mirror US
At press time, China's markets had seen a similar reaction, with the price of bitcoin on the CoinDesk CNY BPI falling nearly 8% to hit ¥3,075.27.
This figure was down from an opening price of ¥3,339.58, which was also the market's daily high.
Despite the recent price decline, bitcoin industry leaders expressed optimism in conversations with CoinDesk that the development would be little more than a speedbump on bitcoin's road to mainstream adoption.
business development consultant Charlie Shrem, for example, noted that the current price drop represents an opportunity for certain segments of the bitcoin market, saying:
CMO and co-founder Joseph Hsieh further emphasized the long-term value of bitcoin to CoinDesk, adding:
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