Bitcoin Dropped Below the $7,000 Mark For the First Time Since Early February

The cryptocurrency market has lost $100 billion in value in the last week. Major cryptocurrencies including Bitcoin, Ethereum, Ripple, and Bitcoin Cash dropped more 13 percent in the last month. 

In the last 24 hours, Bitcoin has seen a 12.6 percent decline in value, dropping from $7,900 to $6,600. But rising again to sit at $7,219 at time of publication. These low prices have not been seen since the major slump in February.

Despite some resistance to the drop, there are slow signs of recovery. Unlike the slump earlier in the year that was followed by a price spike to $12,000. Current volume on most exchanges is low.

Optimism remains high

Even among the massive losses, some analysts remain optimistic. Wall Street-based Fundstrat’s Tom Lee believe that bitcoin is still on track to hit $20,000 by the end of the year.

Abra CEO Bill Barhydt has commented on the market saying that while there is low demands towards the currency from institutional investors and retailer traders in the West. The opposite is true for traders in Asia.

Asia leads market strength

“There really is zero large-scale institutional money from the west in crypto right now. That is happening in Japan. Once a large sizable chunk of Western institutional money starts to come in — watch out,” said Barhydt. Barhydt goes on to say that hedge funds will be looking for ways to enter the cryptocurrency market once the volatility of the market reduces.

“I talk to hedge funds, high net worth individuals, even commodity speculators. They look at the volatility in the crypto markets and they see it as a huge opportunity. Once that happens, all hell will break loose. Once the floodgates are opened, they’re opened,” he said.

Blockchain is here to stay

Nvidia CEO Jenson Huang shares Darhydt’s optimism. Huang appeared on CNBC’sMad Money program on Thursday where he talked up cryptocurrency.

“Cryptocurrency will be here. The ability for the world to have a very low-friction, low-cost way of exchanging value is going to be here for a long time,” Huang told Tv host Jim Cramer.

Nvidia produces high-powered graphics processing units or GPUs which are an essential part of building blockchain, the technology that supports cryptocurrencies.

Nvidia enjoyed a spike in share value as cryptocurrency became mainstream, but their stocks have recently taken a dive in the wake of Wall Street rethinking its position on the volatile market.

“Blockchain’s going to be here for a long time and it’s going to be a fundamental new form of computing,” Huang told Cramer. “I expect blockchain, I expect cryptocurrency to be an important driver for GPUs. The reason why cryptocurrency became such a popular thing on top of our GPUs is our GPUs is the world’s largest installed base of distributed supercomputing,” Huang explained.

 

Source: Interesting Engineering

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