Bitcoin under 7.000 USD share. New step back from cryptocurrency: will it be preparing for a rebound?
Bitcoin, the world's most important cryptocurrency by market value, has still lost ground in the past few days, dropping below the 7.000 USD threshold.
Mati Greenspan, senior market analyst at eToro, said in this regard that the movement seems to be not too correlated to recent fears of a global trade war, and more associated with the waves of evaluations of traders not only in relation to the cryptocurrency sector, but also to the whole financial world.
“I think there is a great connection in the way people manage their portfolios and them cryptocurrencywhich have been increasingly correlated with stock markets, especially in recent weeks, "the analyst told CNBC in a telephone interview. “And all of this comes as more and more brokers they add bitcoin in their products, creating new liquidity "bridges".
Also Ethereum e Ripplerespectively the second and third largest cryptocurrencies by market capitalization saw sharp falls in their price, with Ethereum falling more than 9 percent to $ 375,31, and Ripple losing more than 10 percent to 50 cents.
Trade war fears
China yesterday announced the launch of new tariffs on 106 US products, in a move that shook investors and further fears of a global trade war. Cryptocurrencies such as Bitcoin, which are decentralized and not supported by governments, have been affected at least secondarily by this, confirming their trend volatility.
Charles Hayter, CEO of CryptoCompare, particularly stated that investors are probably facing the desire to "flee" towards investments deemed safer, but that this movement has not been felt to such an imposing extent.
"In the grand scheme of things, cryptocurrencies lie on the riskier side," Hayter told CNBC in an e-mail, and "the hint of a trade war is frightening."
