Today, Friday August 3, the price of bitcoin (Bitcoin) has fallen even further. At 7:15 (GMT+1), the main cryptocurrency is trading at $7,302.5 on BitForex, at $7,326 on BitMEX and $7,309.64 on Binance cryptocurrency exchanges. Its weighted average price stands at $7,347.13 (-4.32%), and its market capitalization is $126,000 million.
The price of bitcoin went below $7,500 for the second time in a week: the fall on Wednesday has presumably followed the news that South Korean authorities are considering the possibility of suspending tax benefits for cryptocurrency exchanges. Currently, bitcoin is under pressure due to the fact that the situation in South Korea has not been clarified. For example, according to a study carried out by a blockchain startup Chainalysis Inc., the use of bitcoin in electronic commerce is decreasing.
According to the researchers, after the peak of activity registered in September ($411 million), the billing of the largest cryptocurrency processing services was reduced to $60 million in May 2018. In addition, market participants continue to pay attention to expert forecasts.
Economist and trader Tuur Demeester has said that bitcoin will not reach new highs this year. He lists several reasons to make such a claim, including growing competition in the mining market despite the decline in the price of the first crypto.
According to his estimates, the profitability of bitcoin miners has been reduced by 90% since January, and “profit margins under heavy pressure, it’s not unlikely that miners are and will stay responsible for a significant amount of selling in the market.”