Cryptocurrency

Price of Bitcoin Plunges Below 7,000 USD

Bitcoin, the biggest cryptocurrency in term of market cap plunged after having a satisfactory stint in the month of July this year. The currency dropped below the 7,000 USD mark, which was the lowest in three weeks.

As Bitcoin fell below 7,000 USD, which was at its lowest value in the last three weeks, the largest cryptocurrency came under criticism from some quarters. The digital currency dipped by about 6 percent and had a 6,000 USD handle. It was a new all-time low since July 17.

The month of July saw a regenerated excitement surrounding the cryptocurrency when the price of Bitcoin rose by approximately a third. However, the recent price drop of the coin posed a technical challenge and confusion.

Starbucks’ New Venture Could Not Stabilize Bitcoin’s Value

The price of Bitcoin did not respond positively even when the news of Starbucks collaborating with ICE (Intercontinental Exchange Inc.) grabbed the headlines. The venture aims to trigger a wider global acceptance for the cryptocurrency. Rather, there could have been chaos surrounding the news leading to this sharp decline that started on July 30.

The new service from the coffee giant would enable its consumers to convert their digital currency while making their payments. However, Starbucks would continue to accept fiat currencies like dollars like they have always done.

Meanwhile, the bearish comments from the CEO of JPMorgan, Jamie Dimon on August 4 could have also triggered the selling. Last year, the CEO referred to digital currencies as a “scam”. Dimon also added that he did not have interest in Bitcoin, the largest digital currency of the world.

According to a report in Bloomberg, Dimon also hinted that it is possible that governments could shut down the cryptocurrency since they are unable to control them.  Other prominent digital currencies that are the closest rivals of Bitcoin like Ripple, Litecoin and Ethereum also had a dismissal performance on July 30.

 

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
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Pala Sen is an avid follower of fintech, travel and health updates, current affairs and entertainment news from all across the world and writing is a passion for her. She had been previously associated with the corporate world for several years and holds a degree in MBA and a postgraduate software diploma called GNIIT from NIIT.

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