Bitcoin Price Dips Below $7,000 as Volumes Drop

An overnight rally in the bitcoin price proved to be short-lived Monday, as trading volumes continued to dwindle in the wake of last week’s reversal. At the time of writing, bitcoin is trading well above its key support but negative cash flow continues to limit potential upside.

BTC/USD Update

Bitcoin’s price was down 1.5% Monday to trade at $6,924, according to Bitfinex. The leading digital currency reached a high of $7,153 but failed to sustain positive momentum as trade volumes drifted further below $4 billion. At the time of writing, bitcoin’s digital exchange market had turned over $3.8 billion compared with 24 hours ago.

Bitcoin faces a major inflection point at $6,800 – the level that separates correction from bear-market conditions. The digital currency is down more than 18% from last month’s swing high above $8,500.

The broader cryptocurrency market was equally tepid on Monday. Ethereum, bitcoin cash and EOS were little changed while Ripple XRP and Stellar were down more than 1% each. In terms of market cap, crypto assets had a combined value of $252.6 billion, down from a session high near $260 billion. Trading volumes across all assets, including bitcoin, was $11.2 billion, according to CoinMarketCap.

No Coffee for Bitcoin

Starbucks would like everyone to know that it is not accepting bitcoin payments at any of its coffeehouse locations despite misleading media reports to the contrary.

In an email to Motherboard, a technology and science publication, the company said that “it is important to clarify that we are not accepting digital assets at Starbucks. At the current time, we are announcing the launch of trading and conversion of Bitcoin. However, we will continue to talk with customers and regulators as the space evolves.

The company added: “Customers will not be able to pay for Frappuccinos with bitcoin.”

The clarification was issued Friday after New York Stock Exchange operator Intercontinental Exchange confirmed that Starbucks will play a leading role in creating a “new global platform and ecosystem for digital assets.” Those efforts will be concentrated in a new crypto startup by the name of Bakkt, which plans to manage investors’ cryptocurrency and hasten mainstream adoption of bitcoin payments.

Bakkt plans to launch operations in November, pending regulatory approval.

As Hacked reported Sunday, the major announcement had a limited impact on bitcoin prices, a sign that volatile over-the-counter trading was dictating market flows.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

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Sam Bourgi

Sam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.