Bitcoin slumps to a 5-week low as demand wanes, says analyst

Bitcoin traded lower over the long holiday weekend before attempting to consolidate on Tuesday, hitting a five-week low and dragging with it the collection of smaller digital currencies known as altcoins.

On Tuesday, Bitcoin,














BTCUSD, +0.97%












the best-known cryptocurrency, was trading at $3,546.50, up 0.7% since Monday’s level at 5 p.m. Eastern Time on the Kraken exchange. The cryptocurrency reached an intraday low of $3,442.50, its lowest level since Dec. 17.

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Markets analyst Jani Ziedins of the CrackedMarket blog said a lack of fresh demand is capping the price of world’s No.1 digital currency. “Bitcoin keeps bouncing along in the upper $3K range, but it was unable to extend last week’s breakout above this level,” he wrote.

“Demand remains an Achilles’ heel for all cryptocurrencies because most people have soured on this investment class and have no interest in putting in new money. Every bounce continues to be a selling opportunity,” Ziedins said.

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After drifting to multiweek lows early on Tuesday, major altcoins have pared losses and are trading back near opening levels. Ether














ETHUSD, +1.15%












 was up 0.6% at $115.88, Litecoin














LTCUSD, +0.33%












was unchanged at $30.66, Bitcoin Cash














BCHUSD, +0.08%












gained 0.1% to $121.10, and XRP














XRPUSD, +0.14%












was down 0.1% at 32 cents.

The broad-based selloff pushed the total value of all cryptocurrencies below $120 billion to $119.2 billion, according to CoinMarketCap.

Bitcoin futures opened lower on Tuesday. The Cboe Global Markets February contract














XBTG9, -0.98%












is down 1% at $3,520, while the CME Group February contract














BTCG9, -1.26%










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