At the time of writing, bitcoin – the world’s number one cryptocurrency by market cap – has fallen through the floor and is trading at just over $9,300. This means it’s lost more than $1,000 from its 2020 high point.
Bitcoin Isn’t Doing So Hot, Lately
To be fair, however, everything seems to be slumping. The stock market isn’t doing well either, with reports claiming the Dow Jones has dropped by more than 1,000 points in just the last 48 hours alone.
Some claim that the heightened fear and spread of the coronavirus in China is responsible for the demise of all our financial tools. Up until this point, it seems that the virus has done quite a bit in pushing bitcoin’s reputation as “digital gold” forward. Many compared it with the precious metal and saw it as an applicable tool for retaining wealth during times of economic strife.
However, now it seems to be working in the reverse. Despite the ongoing trade war and the threats of tariffs over the past six months, the United States still does heavy business with China, and so long as our business interests align, their problems are going to rub off on us. It seems like the coronavirus is now taking a toll on our stocks thanks to its newfound stance as a global threat.
Of course, there are also reports floating around that the coronavirus is not real or manufactured – a means to bring down the stock markets and bite back at President Trump and reduce all that he’s built over the past year.
Putting that aside, however, it’s hard to pinpoint exactly what could be bringing bitcoin down into the dumps. Previously, the currency was trading above $9,800, which was a fall from its high for the year of around $10,400. Now, at more than $1,000 less, the currency has taken a major turn for the worse despite figures like Changpeng Zhao of Binance fame believing that BTC is in for a meteoric rise in the coming weeks.
One source, however, blames Libra, and says that now that the project is back on track, everybody’s favorite cryptocurrency is beginning to suffer. Recently, the Facebook-built cryptocurrency has added Shopify to its network of governing piers, and the e-commerce platform will now serve a prominent role in the company’s “Libra Association.”
Shopify Is Entering the Fray
Dante Disparte – head of policy and communications for Libra – explained in a statement:
Shopify joins an active group of Libra Association members committed to achieving a safe, transparent and consumer-friendly implementation of a global payment system that breaks down financial barriers for billions of people.
The news is a welcome change – for employees, anyway – considering how many companies, from PayPal to Vodafone, have exited the Libra Association since late last year.