Bitcoin and Altcoins Prices Continue to Fall

The prices of bitcoin and ethereum continue to drop as investors give in to fears of another global economic slump caused by the quick-spreading delta variant. Although vaccines have become available, the newest COVID-19 variant appears to be much stronger than the original coronavirus strain. Moreover, most countries including the U.S. are faced with anti-vaxxers who remain vulnerable to risks of contracting and spreading the new variant that originated in India.

At present the current investing is centered on government-backed treasure bonds that financial analysts believe are the safest gambling products.

Last Thursday at around 4:00 a.m. EST, bitcoin price dropped below $32,500; but was able to slowly gain ground, which led to a current trading price of 33,316. The problem though is that with cryptocurrency trading, drops in bitcoin prices usually affect the prices of altcoins. The price of ethereum for one, has sunk and is currently trading at $2150, a price that is 8.7% when compared to the previous price index for ether.

Since May, BTC prices began to take a downward trend coming from an all time-high of $65,000 achieved in April. Some traders had hoped that the price falls were temporary and that a turnabout will eventually take place. However, others are saying that BTC prices will sink to $20,000, before institutional investors resume with their buying activities.

CNBC’s Squawk Box Interview with Galaxy CEO Links the Price Drops to China

Mike Novogratz , the CEO of Galaxy Digital who appeared as Squawk Box guest las Thursday said the BTC price drops are results of China’s war against cryptocurrencies. BTC investors in China have been selling off their digital assets, while U.S. investors are buying them. According to Novogratz, China’s crackdown on entities involved in crypto exchanges in China is all part of the “cold war” being waged against the U.S.

On Tuesday last week, another China-based company suspected of rendering software as a service for entities facilitating digital currency transactions, was shut down by China’s central bank. Shut down orders have been regularly taking place in connection with the country’s existing ban against the local cryptocurrency industry.

The price-backslides in bitcoin markets, were triggered by the state of emerg ency declared by Japan. As had been anticipated, the country’s COVID-19 cases spiked after officials of the country insisted on holding the Tokyo Olympic games. As a result trading on equity markets went on a decline, as news of Japan’s emergency declaration sowed fears of another global economic catastrophe.

Posted by Madelina Feliks