Negativity continues to plague the Bitcoin market

Recently, the price of Bitcoin (BTC/USD) fell below $200 on multiple exchanges, approaching the January low.

The latest drop, as online reports and discussions speculate, was caused by an unexpected termination of orders at BitFinex, a Hong Kong-based digital currency exchange that experienced a flash crash last week, halting trading services for more than seven hours.

This incident eventually affected the entire Bitcoin market, causing panic selling and causing Bitcoin to fall by 5-7%.

Nevertheless, before the BitFinex incident, the Bitcoin market was already filled with too much negative sentiment.

The erratic price action was initially triggered by Bitcoin XT, the controversial bitcoin fork client, and was later affected by the BitFinex flash crash, which temporarily pushed prices to January lows.

Although Bitcoin has basically not yet been exposed to the global stock market, at this time, investors seem to have kept their distance from Bitcoin's risky fluctuations considering the health of the currency market.

The continued turmoil in the Chinese stock market, coupled with the crisis in the London FTSE, Dow Jones futures and North American indices, may trigger negative demand in the Bitcoin market.