Bitcoin Falls Below $7,000, Cryptos Retreat Amid Global Trade War Fears

  • Most cryptocurrencies are falling for the day, with bitcoin sliding below $7,000
  • This as fears of a global trade war keep growing with Trump and China going head on

Bitcoin, Ethereum Litecoin and other cryptocurrencies have been enduring a bear market for months. Earlier this week, bitcoin and ethereum, the two biggest cryptocurrencies by market cap, failed to rally beyond the $7,500 and $450 marks respectively. At press time, Bitcoin is trading at $6,970 while Ethereum is at $375.

Bitcoin, according to analyst Phantom Strategies, needed to breach the $7,500 mark to establish a strong base to continue. Wednesday morning most cryptocurrencies started rallying, although their gains culminated in retreat – previously regained ground was once again lost

Tariffs and Trade War

Some of the worst affected cryptocurrencies, at press time, are NEO and Litecoin, as both lost about 11 percent of their value in the last 24-hour period. Their losses were followed by those of Stellar and Dash as both are down by nearly 10 percent. The current landscape between China and the US is taking its toll on global markets, and may be affecting cryptocurrencies as well.

The tit-for-tat exchanges on trade tariffs between both the US and China continue to create a fragile environment for investors. China has recently retaliated against the US’ protectionist policy with tariffs on over 128 American imports. This, combined with other events, led to significant sell-offs within US indexes.

According to CNBC, Bitcoin has suffered one of its worst quarters ever this year, as it saw the flagship cryptocurrency lose over $119 billion. Ripple (XRP) has has also seen its value go down in what is being considered its worst starting quarter. The token fell by 77 percent over this year’s first few months..

Recent charges brought before Centra Tech, an ICO endorsed by popular celebrities like  legendary boxer Floyd Mayweather and artist DJ Khaled, may have contributed to the market’s decline.

However, according to Mati Greenspan, a senior market analyst at eToro, drop may not be related to the trade war. He said:

“I think that there is a big connection in the way that people are managing their portfolios and the cryptocurrencies have been increasingly correlated with the stock markets especially in the last few weeks. This as more and more brokers add bitcoin, the liquidity bridges are being built."

Mati Greenspan

Weekly Newsletter

Report: Bitcoin Top Performing Crypto for Q2 2019

Michael LaVere
  • Bitcoin outperformed all other crypto-assets in Q2 2019 according to a CoinGecko report. 
  • Top 5 cryptocurrencies now control 86% of the market. 

Bitcoin was the top-performing cryptocurrency in Q2 2019, despite the rocky price volatility hitting the market. 

Bitcoin Dominance

According to a new report published by CoinGecko, bitcoin outperformed all other digital currencies during the second fiscal quarter of the year.

BTC posted a net gain of 165%, compared to the second-highest performing currency of bitcoin cash at +137%. Ethereum placed third at +107%, with litecoin and XRP rounding out the top five at +103% and +28%  net gains, respectively. 

The average return for the top five currencies in Q2 2019 was +108%, showing an overall robust turn in the marketplace for crypto-assets compared to last year. 

top 5 cryptocurrencies coingeckoTop 5 performing cryptocurrencies during Q2 2019 | Source: CoinGecko

In addition to leading the pack in terms of gains, bitcoin also consolidated its market dominance, while EOS and XRP experienced a retraction. 

According to the report,

 

“Bitcoin’s market dominance increased significantly in Q2 2019, from 54.6% to 65.0% (+10.4%). XRP and EOS lost nearly half of its market dominance. XRP decreased from 9.8% to 5.7% (-4.1%) while EOS decreased from 3.3% to 2.0% (-1.3%).”

 

While bitcoin’s gain in dominance was impressive, the entire top five separated itself from the general pack of altcoins during the last fiscal quarter. 

The report continues, 

 

“Almost all other coins lost market dominance in Q2. By end Q2 2019, the top-5 coins comprised approximately 86% of the overall market capitalization.”

 

Overall Crypto Growth

However, the entire market of crypto increased during that time. CoinGecko called the most recent quarter a “crypto summer,” with total market capitalization for crypto-assets gaining over $200 billion and obliterating previous expectations.

Trading volume also rose steadily, nearly doubling by the end of Q2. 

cryptocurrency market cap trading volume coingeckoTotal market cap and trading volume rose throughout Q2 2019 | Source: CoinGecko

Despite the introduction of Facebook’s libra in June, the price of bitcoin continued to climb on a meteoric rise from $4,000 to above $10,000. CoinGecko reported bullish sentiment growing throughout the quarter, with the original cryptocurrency gaining in positive mentions through social media. 

Bitcoin also eclipsed “stocks” in overall search volume on Google for the first time since Q4 2017, when the price of btc hit its last all-time high.