Bitcoin Falls Slightly as Rising COVID-19 Cases Disrupt Capital Inflow
Bitcoin, the world’s most dominant cryptocurrency, dipped on Thursday and Friday following reports of rising numbers of COVID-19 cases.
The digital currency that started mirroring traditional assets closely in March declined from $9460 it traded per coin on Thursday $9167 on Friday.
Bitcoin failed to break the $10,519 resistance level anticipated by investors despite Bitcoin Halving of May 11, 2020.
As projected on Investors King, lack of inflow of outside funds due to COVID-19 uncertainty continues to hurt the attractiveness of Bitcoin and other cryptocurrencies.
Also, recent data points to one of the likely reasons for the decline in the sentiment of Bitcoin bullish run expected by most traders and investors since May.
According to a Coindesk report, about $60 million were reportedly moved to Ethereum in the month of June. Why this is good news given that Bitcoin is being used in varieties of decentralised financial services as Ethereum, it weakened the expected demand needed to sustain Bitcoin price above the current level.
However, Medio Demarco, a former associate at Deutsche Bank and co-founder of a cryptocurrency research firm, Delphi Digital, said “The recent trend shouldn’t come as a surprise and will probably continue.”
Also, Ben Chan, CTO at BitGo, a cryptocurrency payments processor said “The purpose of WBTC is to bring bitcoin to the world of decentralized finance.”
“Yield opportunities for lending and supplying WBTC” in Ethereum-based applications are driving recent growth, he added.
