Bitcoin Drops Below $7K as Traditional Markets Flatline

Bitcoin has fallen beneath the $7,000 psychological price range as global markets took a breather Saturday amid the ongoing trade dispute between the U.S and China.

The world’s largest cryptocurrency by market value dropped beneath its temporary supports near the $7,000 price level at around 22:46 UTC (5:46 p.m. New York time) on Nov. 24 and is currently changing hands for $6,924, according to CoinDesk’s bitcoin price index.

The plunge in crypto comes at a time when traditional markets cooled slightly by Nov. 22’s close, likely due to sentiment surrounding the rhetoric from the U.S national security adviser, Robert O’Brien, who warned that President Trump would not turn a blind eye to 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 a meager 0.2 percent up, to 3110.29.

The Dow Jones Industrial Average didn’t fare any better, closing 0.39 percent up, to 27,875.62, while the Nasdaq Composite was up 0.16 percent, to 8519.88 by weeks end, according to MarketWatch data.

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 crypto data provider Messari.

The total market capitalization of all cryptocurrencies also fell $11.1 billion, down from a 24-hour high of $201 billion to $190 billion.

Disclosure: The author holds no cryptocurrency at the time of writing