Various causes have led to the bitcoin slump seen over the past week, the main one being the belief that bitcoin has moved into bubble territory. Tech billionaire Mark Cuban tweeted that bitcoin is in a bubble, and that it would collapse sometime in the future. Other investors and experts also believe bitcoin is extremely overvalued, and that a correction was due to happen.
A previous correction had occurred toward the end of May when Nicola Duke predicted a market correction guided by Fibonacci retracements. It was after this brief correction that bitcoin value rebounded and headed toward $3,000 apiece. At this point, it became obvious that investors were covering their positions and taking their profits, and that probably caused the bitcoin slump after the $3,000 peak.

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