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Bitcoin Struggling to Reach $7,000 but Cryptocurrency Market Seeing Modest Gains

March 27, 2020 at 17:00 by Matt Jackson

Bitcoin has been trading between $6,500 and $6,900 for the past 72 hours, failing to take the $7,000 resistance and leading analysts to predict a fall in prices. However, as Bitcoin continues to trade horizontally, other cryptocurrencies have posted gains against the dollar compared to 24 hours ago. Of the biggest coins by market capitalization, Ripple has seen the biggest gains, rising more than 8% in the past day to its highest price in two weeks.

The world’s largest cryptocurrency suffered a major crash on March 12, falling from $7,900 down to $4,850, a decline of nearly 40% in 24 hours. The sharp fall was attributed to the outbreak and spread of the Coronavirus, with almost all major markets suffering as a result of the pandemic. Prices have recovered and stabilized since then, with the cryptocurrency pushing $6,900 and towards $7,000 over the past 4 days. However, the digital currency has failed to really test this resistance level and the push looks as though it is weakening, with the bears set to take over. Analysts have warned that a decline is more likely than a further push to $7,000 at this stage.

The decline in price has led to one mining firm putting a hold on its efforts. California based Digital Farms has a 600,000 square foot cryptocurrency mining farm. The company made $1.67 million in its first year of operations but has now announced that it is putting its mining efforts on hold because of the recent drop in prices and the uncertainty caused by Covid-19. Bitcoin is due for a halving event in May, too, which sees the mining reward halved, and this may well have factored into the company’s decision.

Meanwhile, the President of the Brazilian Banking Federation, Murilo Portugal, has said that Bitcoin is not a real currency, stating that “cryptocurrencies do not fulfil any of the classic functions of the currency” referring to their use as a unit of account, a method of exchange, or a store of value.

Meanwhile, one of the world’s largest cryptocurrency exchanges, Binance, has announced the launch of the Binance Card. The Binance Card is a Visa powered debit card that enables users to pay using their Bitcoin or other cryptocurrency balance. It will compete with the Coinbase card, which was launched in the UK approximately a year ago, and will allow contactless payments without having to go through the usual process of converting crypto to fiat, withdrawing to a bank account, and then paying using a contactless bank card.

At 16:50 GMT, Bitcoin (BTC) prices had increased by 0.26% to $6,657.63 while Ethereum (ETH) prices had gone up 1.13% to $136.86. Ripple (XRP) added 9.26% in the past 24 hours to change hands at $0.177. Bitcoin Cash (BCH) and Bitcoin SV (BSV) are up 1.08% and 1.47% and are trading at $225.33 and $172.63 respectively.

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

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