Bitcoin Falls Amid U.S. Stock Market Volatility

Monday, April 9, 2018 12:10 PM UTC

Monday, Apr. 9, 2018 12:10 PM UTC

Bitcoin prices have fallen below $7,000 for the first time in two months as fears of a potential trade war between the US and China spooked the markets. 

Bitcoin prices have fallen below $7,000 for the first time in two months as fears of a potential trade war between the US and China spooked the markets. Bitcoin’s value increased 2000% over the course of 2017 and hit a record high of almost $20,000, but it has struggled this year. Bitcoin was trading at $13,354 on Jan. 1 and reached a high of $17,161 five days later, but it slumped to just $6,949 on Feb. 5 after a mass sell-off from investors amid fears of a regulatory clampdown and the bubble bursting. However, it swiftly rebounded and climbed back up to $11,500 on March 4, only to start steadily sliding once more. It spent a couple of weeks hovering between $7,500 and $9,000, but recently it has plunged below the $7,000 mark.

It has closed five of the last eight days below $7,000 and it was trading at $6,980 on Sunday. The big question on everyone’s lips is: Can it recover and surge back up towards the $20,000 mark, or will it continue falling and then fade into obscurity? The Bitcoin bulls are, well, bullish. Marshall Taplits, chief strategy officer at NYNJA, says: “The trend for Bitcoin is clear: up, going to about $20,000 from zero in 10 years. Each time Bitcoin corrects, the media wrenches. However, anyone who has been watching crypto currency since the beginning knows to bet on $30,000.”

Daniel Worsley, chief operating officer at Local Coin Swap, adds: “There is no other network that has been as battle tested as the Bitcoin blockchain. It has resisted serious adversaries, and coordinated attacks designed to disrupt its functioning. It has survived all assaults. It wouldn't surprise me at all to see the price above $20,000 this year. Especially given the amount of negative press which is now priced in, and investor expectation of another bull run, it will only take a couple of positive developments to set off the train.”

Meanwhile, the bears are in typically bearish mood and naysayers continue to write off Bitcoin’s chances of establishing itself as a viable alternative to fiat currencies like dollars. They argue that regulations could kill of cryptocurrencies, saying that they are being reined in by the governments they were built to bypass. But legislation could actually provide greater assurances in the market. It is also worth noting that Bitcoin has declined at a time when the wider market is in free fall following the news of a potential US-Chinese trade war.

It is also worth noting that retailer adoption of Bitcoin in developed markets like the US and Canada is on the up, despite the price decreases.

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Retailers are beginning to accept bitcoin and other forms of crypto-payments at accelerating rates. More and more are opening up to the idea as well: #btc #bitcoin #litecoin #eth #ethereum #blockchain #blockchaintechnology #revolutionary #SocialWallet

— Social Wallet (@SocialWalletInc) April 8, 2018

Electronics retailer Newegg is now accepting Bitcoin payments in both countries and chief executive Danny Lee said the value of bitcoin has skyrocketed since 2014 and shoppers holding the cryptocurrency have considerably more purchasing power. Expedia, Dish and Overstock are among the other retailers currently accepting Bitcoin payments, and Starbucks may soon follow suit. Chief executive Howard Schultz believes there will be trusted digital currencies off the blockchain technology, which is in turn legitimized by bricks and mortar outlets like Starbucks.

In a survey of 100 retailers that use Square checkouts, 60% said they would be open to accepting Bitcoin payments. That seems surprising given Bitcoin’s notorious volatility, but in recent weeks the swings in price have not been too wild. It remains an extremely viable tool for sports bettors too, but it is still advisable to bet using it and then change your winnings back into dollars pretty quickly to avoid being burned by price declines and seeing your profit margins eroded.

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