Bitcoin Price fell below $9,000

bitcoin price drop

This week Bitcoin price continue to fall, the price fell 4.4% Friday, droppng below $9,000, lowest in last week.

Market experts belived it’s mainly due to the lack of positive market drivers and speculation that the U.S. Federal Reserve might pause this year’s
rate-cutting cycle, which could curb demand for the cryptocurrency as a potential inflation hedge.

The price dropped to $8,800 as of 18:57 UTC (1:57 p.m. New York time), according to Trading View. It’s still
more than double where bitcoin was at the start of the year, leaving the cryptocurrency as one of the world’s best-performing asset classes in 2019.

Bitcoin had rallied more $2,000 in late October after Chinese President Xi Jinping declared that the country would embrace blockchain –
the decentralized computing networks underpinning cryptocurrencies – as a “core” technology, followed by the reveal of hundreds of blockchain projects already in motion. Since then, though, the price had mostly fluctuated within a range between $9,100 and $9,600.

The world’s most prominent crypto currency Bitcoin fell to as little as $8,666.39 around 10 a.m. EDT, having lost nearly 6% of its value in less than 24 hours, CoinDesk data shows.

At this point, the cryptocurrency was trading at its lowest since October 25, additional CoinDesk figures reveal.

Following this decline, bitcoin has experienced only modest gains, rising from its intra-day low to nearly $8,900 around 5 p.m. EDT.

The Friday’s price drop accelerated after bitcoin currency broke below its 200 day moving trading average of $9,186, which had been seen as a price support by some traders using technical analysis.

“This is a pretty classic example of a technical move,” said Kevin Kelly, co-founder at Delphi Digital, a cryptocurrency research firm in New York.
“It just sort of broke to the downside.”

The price drop appears to have triggered margin calls for some traders, leading to position liquidations and creating additional selling pressure, Kelly said.

One of the macro-economic theory for buying bitcoin is that, it’s like gold, and can be used as an inflation hedge, Kelly said. But with increasing signs
that the economy might be responding to the Fed’s three interest-rate cuts earlier this year, speculation is mounting that the U.S. central bank might refrain
in the near term from further moves to ease monetary policy, he said.

John Todaro, director of digital currency research for TradeBlock, offered a similar point of view.

“Bitcoin, and the digital currency market in general, posted a strong rally following the Chinese President’s comments in October, and you are starting to see prices come back some as investors tease out the actual implications of his comments,” he stated.

“It is still unclear to the extent, if any, China will actually embrace digital currencies and non-sovereign assets such as bitcoin or if the country is simply embracing private blockchains.”

Going forward, he emphasized that bitcoin’s lackluster trading activity makes it vulnerable to notable price fluctuations.

“Bitcoin has seen renewed volatility over the past 10 days and could easily push past support/resistance levels during times with thinly traded markets.”

While many traders thought bitcoin, as the original blockchain and biggest digital asset by market value, might benefit from broader adoption of the technology, if China has been at work developing a digital version of its own currency, it could be a win for blockchain technology on the whole but mean little for bitcoin today.

MOVING FUNDS WITH WIREX

The convergence of cryptocurrency and fiat currency is one very important balance the financial world needs to transition permanently into a fully digital economy. For people to truly understand the importance and potentials of a digital financial economy, we must make them trust the process. Trusting the process for non-crypto people most especially those who are not really tech exposed, it has to be gradual, gradual enough for them to handle. We must walk them through the crypto corners to ensure that have a very good first time experience. There is no better way to do this than to simply converge what they are use to -fiat- and what they are not so familiar with -cryptocurrency- into one space and let them learn what it is and how it relates to what they are already used to. It is this framework that Wirex as a company has adopted and are working on to become a global fiat-crypto base for the world population.

In this article, we’ll look into what Wirex is doing as a project and the impact it can have on the average non-crypto user.

WIREX

Wirex is United Kingdom based company which provides solutions to transactions between digital assets and fiat currencies. The company tries to create a balance between traditional fiat currencies and Blockchain technology which provides easy access to customers to perform various payment options. Their aim is to create a fluid flow between Cryptocurrencies and major traditional currencies. The platform serves users as a wallet, provides transfer services around the world and fast exchange transactions between crypto and fiat currencies.

The company created a Wirex Visa Card product that gives power to its holder in making payments anywhere around the world while even getting a reward for it. Wirex is the first crypto inclined company to create a CryptoBack loyalty structure program that gives bank 0.5% of in bitcoin to every transaction made with the Wirex card. Transfer between Wirex accounts are completely free and account can be loaded with funds easily by using debit cards, credit card or transfer via commercial banks.

Wirex was launched in 2014 and has since then processes over $2.5 billion dollars between Cryptocurrencies and fiat currencies around the world with over 2 million customers in 130 countries.  Wirex adopted a tagline since its inception which reads ” I Pay My Way. I Pay With Wirex.” The campaign lines effectively depict the ease with which using the Wirex service platform and credit card can make life much easier while making payments. It also means that either your money is in traditional fiat currencies or in crypto, they are easy to liquidate and used to attend to your daily needs. The company readily accepts Bitcoin, Litecoin and Ripple, Ethereum, Waves, Wollo, Dai, GBP, EUR and USD as the major value transacting metrics. It is important to note that the company is not an ICO  proposing setup but rather a company that is rooted in binding two of the world’s most famous value metrics. They are backed by major financial institutions like : Soft Bank and the SBI Group. This means they do no lay claim on the decentralization structure of Blockchain ICO firms but are actually accountable to their investing institutions and financial regulations of the UK.