Bitcoin’s wavelike movement is not an uncommon phenomenon, but it appears the downward trend has become more frequent. The digital asset which began the new year at above $4,000, on Monday went below the $3,500 threshold. As a result, many have wondered if this isn’t 2018 altogether given that its lowest price within a month has just been recorded.
Bitcoin Selling for Under $3,500
Based on Bitcoin’s price chart, the digital asset went below $3,500 a few hours ago and is now trading at $3,422. It may not be a major decline, but compared to its value before the weekend, there has been over a 5 percent loss. However, this can be said to be a drop in the ocean given that this is a digital asset that has already lost over 80 percent of its value since December 2017.
What’s more, $400 billion in value has been shed from a market that was booming as of 2017. Currently, Coinmarketcap’s data shows that the market capitalization of Bitcoin is roughly $113 billion. While this market cap still places it as the most popular and traded virtual currency, the significant amount that has been lost could make the adoption rate of this asset questionable.
Bitcoin Takes Down the Market With it
As is usually the case, Bitcoin did not go down alone given that the virtual asset has taken several others alongside it. Here, the price of Ether and Bitcoin cash also declined at about 10 percent over the weekend. Nevertheless, no one is taking a dig at them, given that they are not warming the first bench on the Coinmarketcaps’ chart.
BTCNN on January 23 reported of Bloomberg’s analysis which reveals that Bitcoin may have undervalued. At that time, the digital asset was trading at around $3,500. Also, there were predictions based on the GTI Global Strength Technical Indicator that the currency has found support around $3000 or $3100.
Despite Price Trend, Adoption Continues
Despite these trends and the market capitalization, the latest news around the world regarding the virtual currency confirms that many have not been deterred by its price. BTCNN reported an instance of this on January 28 where Lieferando.de, the largest German food ordering platform is accepting the Bitcoin for payments.
On January 28, a report was also made of Indiana’s and New Hampshire’s filling of a bill that will allow Bitcoin and other cryptocurrencies to be used for tax payments. In Indiana’s case, the bill proposes that payments received in fiats should be converted to U.S. dollars. This is in a bid to mitigate the risks that may occur from storing the volatile cryptocurrency.