As sell-off continues, the digital coin may even go down further
Falling from a peak high of $20,000 in December last year, Bitcoin was trading around the $6,847 mark today.
Analysts expect the price of the digital coin to dip as low as $4,000 in the coming days, according to reports.
“Bitcoin’s correlation with equity prices has strengthened recently, but we think that this will be just temporary. We still think that bitcoin is essentially worthless, meaning that it is likely to fare much worse than other assets in the coming months,” London-based Capital Economics told media.
“We expect equity markets to fall as investors cotton on to the fact that rising U.S. interest rates will slow economic growth. But the main factor driving down the price of bitcoin is likely to be a realization that it is simply not a credible long-run alternative to conventional currencies,” the note added.
Meanwhile, the total market cap of cryptocurrencies has also fallen to $256bn from $280bn, according to data from coinmarketcap.
Established in 2009 after the financial meltdown, Bitcoin is a digital currency that has no central bank or regulatory authority backing it up. The digital coins are stored in a digital wallet or on the cloud and can be used in transactions.