Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Bitcoin Dips Below $9,000 and Drags Market Down with It

May 22, 2020 at 10:43 by Matt Jackson

Bitcoin prices dropped below $9,000 yesterday, having hit $10,000 resistance earlier in the week. The world’s largest cryptocurrency has rebounded and is now trading at $9,100. Meanwhile, Tether and Ripple are duking it out to be the third biggest cryptocurrency by market capitalization. Stablecoin Tether overtook Ripple yesterday but has since fallen back; both coins have a total market capitalization of just over $8.9 billion, and only $20 million stands between their total capitalization.

The world’s largest cryptocurrency has spent most of the time since April 30 above $9,000 and has, on several occasions, tested psychological resistance at $10,000. It breached the level on May 8, and made further attempts on May 14 and May 18 but couldn’t sustain the push. The bulls appear to be running out of steam, however, as digital gold has spent the last two days falling from the $9,800 level to trade at a weekly low of $8,850 in late Thursday trading. The price has rallied a little since then but looks to have a weak footing at $9,000. Further decline, in the coming days, is possible.

BTC is down 3% in the past 24 hours and the rest of the cryptocurrency market has seen a similar decline. Ethereum is down 2.83% but is still managing to keep its head above the $200 mark. Ripple, which was briefly displaced by Tether as the world’s third-largest coin, is the only coin in the top 20 to show green, posting a 0.22% gain that pushes it back above the $0.20 mark. The coin is trading at $0.200006.

Rumors started circulating, earlier this week, that Bitcoin’s anonymous founder, Satoshi Nakamoto, had been moving some of his Bitcoin holdings. The rumors started when 50 Bitcoins, which had laid idle for 11 years, were suddenly moved. Bitcoin was invented in 2009, the year these coins were mined, leading many to speculate that the owner must be Satoshi himself. However, plenty of analysts discredited the claim. 50 Bitcoins, which would have cost a fraction of a cent at the time, have a current value of approximately $450,000.

Meanwhile, the Bitmex exchange went offline for an hour on Tuesday. Although the exchange said that a full post-mortem of the incident would be conducted, it is the latest in a long line of errors and problems for the Seychelles based exchange. Most recently, it has been accused of market manipulation.

Shopify has partnered with CoinPayments, a cryptocurrency payment provider, enabling all of Shopify’s customers to integrate cryptocurrency payments into stores. The companies initiated a Beta trial of the partnership in 2019 and CoinPayments CEO Jason Butcher said “as leaders in e-commerce and crypto payments, our combined expertise reflects the future of business transactions.”

CoinPayments was established in 2013 and has plugins available for blogging and website building platforms including WooCommerce, OpenCart, Magento, and now Shopify. They enable consumers to make cryptocurrency-based payments through their gateway and accept more than 1,900 cryptocurrencies. Vendors can then exchange their crypto holding to one of eight fiat currencies so that they can be transferred to a local bank account. The Canadian e-commerce platform, Shopify, boasted having more than 1 million businesses using its services in June 2019, which means that the partnership between the two firms could greatly increase the number of consumers that are exposed to Bitcoin.

At 11:30 GMT, Bitcoin (BTC) prices were down 1.93% to $9,180.69 while Ethereum (ETH) prices were down 1.91%. The world’s second-largest cryptocurrency was trading at $203.51. Ripple (XRP) gained 0.77% and was changing hands at $0.20. Bitcoin Cash (BCH) and Bitcoin SV (BSV) were down 1.29% and 1.04% at $234.03 and $194.63 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.


Leave a Reply