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Bitcoin falls below $10,000 as Facebook rally fades

Oscar Williams-Grut
Senior City Correspondent, Yahoo Finance UK
Bitcoin is displayed in front of the Bitcoin course's graph on 25 June, 2019 in Paris, France. Photo: Chesnot/Getty Images

Bitcoin has fallen back below $10,000 after a brief rally over the last two weeks.

Bitcoin dropped below the psychologically significant level early on Tuesday morning and was down by 6.8% against the dollar to $9,862.91 (BTC-USD) at 9.15am UK time. It was down 6.8% against the pound to £7,800.19 (BTC-GBP).

The slump means bitcoin has lost almost all of the recent gains it made in June. Bitcoin rallied almost 80% in June, reaching its highest level against the dollar since March 2018.

Bitcoin's recent price bump and slump. Photo: Yahoo Finance UK

Analysts said the rally was largely fuelled by the launch of Libra, a new cryptocurrency project conceived by Facebook (FB) and backed by a consortium of top companies including Visa (V), PayPal (PYPL), MasterCard (MA), Spotify (SPOT), and Uber (UBER).

Libra was publicly announced on 18 June and bitcoin rallied almost 50% in the following eight days.

READ MORE: Facebook's Libra could spark 'mass adoption' of crypto

“Bitcoin’s post-Libra re-emergence appears to already be over,” Connor Campbell, a financial analyst at SpreadEx, said. “Having hit $13,856 at one point last Wednesday, the cryptocurrency continued to unwind its end of June gains.”

Simon Peters, an analyst at trading platform eToro, warned that bitcoin could fall as low as $7,200 now that it has broken through the technical support level of $10,600.

Separately on Tuesday, new figures showed continued momentum in the blockchain space. Blockchain is the technology that underpins the bitcoin network and offers the promise of decentralised services and products.

Figures from investment firm Outlier Ventures showed that $822 million was invested into blockchain projects so far in 2019 across 279 deals.

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Oscar Williams-Grut covers banking, fintech, and finance for Yahoo Finance UK. Follow him on Twitter at @OscarWGrut.

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