Bitcoin fell below the $7,000 mark on Sunday for the first time since May. The world’s largest cryptocurrency by market value dropped beneath its temporary supports near the $7,000 price level at around 22:46 UTC on Nov. 24. It dipped further on 06:00 UTC on Nov 25 to $6,548.50 before hovering back near $7,000 mark.
The crypto plunge arrived when traditional markets cooled slightly, likely due to sentiment surrounding the rhetoric from the U.S national security adviser, Robert O’Brien, who warned that President Trump would not ignore Hong Kong’s ongoing crisis.
This would likely complicate efforts by Washington and Beijing to put an end to the prolonged trade war currently underpinning global economic growth forecasts. As a result, traditional markets have flatlined with the S&P 500 index finishing just 0.2 percent up, to 3110.29.
While BTC has fallen, there’s no indication that capital has been moving away from the cryptocurrency into traditional markets. Other notable cryptocurrencies such as ether (ETH) and XRP are also down 7.38 and 4.29 percent according to market info.
The total market capitalization of all cryptocurrencies also fell $11.1 billion, down from a 24-hour high of $201 billion to $190 billion.
The Bitcoin stock-to-flow model would say that the crypto asset should be on track to reach as much as $55,000 per BTC when the asset reaches its halving coming May 2020. Then again, Bitcoin price may be known to surprise people, rising from $6,000 to $55,000 in less than one year seems a little unrealistic. Bitcoin investors should level their expectation at the mean time.