As a trade war is going on between US and China, it is affecting prices of Bitcoin. The cryptocurrencies are in great agony due to the uncertainty of the prices. The bitcoin has come below $7,000 for the first time after a brief period of two months.
After February 6, for the first time on Wednesday Bitcoin prices blow down to $6,919 as it slipped to $7,000 barrier. Bestowing to CoinMarket Cap, as cryptocurrencies are accelerating since last year, it is predicted that the prices might fall up to $6,127.21.
Fall in Bitcoin prices
Before the dip of February, Bitcoin is reported to steep down in the month of November 2017. In spite the threats from the various firm, Cryptocurrencies still kept on blooming in the market.
Mati Greenspam, a Senior Market Analyst at eTero asserted that the move was less correlated to recent fears of a global trade war and more associated with traders evaluating the assets in their portfolio and trying to assign the value to them.
Further, He added that “I think that there is a big connection in the way that people are managing their portfolios and the cryptocurrencies have been increasingly correlated with the stock markets especially in the last few weeks”.
Charles Hayter, chief executive of CryptoCompare, stated that investors were likely fleeing to safer investments as protectionism concerns took hold. “In the grand scheme of things, cryptos lie on the extremely risky end of the spectrum and are for times of hot money,”
Prices of Ethereum and Ripple
Moving forward, as reported by market capitalization Ethereum and Ripple are the second and third-largest cryptocurrencies respectively. Ethereum has steadily fallen by 9 percent to $375.31 while Ripple fell more than 10 percents to 50 cents on Wednesday.
Image source:- Bitcoin