Two days after setting a record high, the price for bitcoin continued its downward slide. At 15:29 UTC, it was trading at $6,788.30, down 5.02% from its price levels 24 hours earlier.
Bitcoin’s loss was Bitcoin Cash’s gain. The bitcoin blockchain offshoot was up by more than 31% to $825.94. In fact, the cryptocurrency seemed to benefit from an inflow of funds from other cryptocurrencies as well. Seven out of the top 10 cryptocurrencies were down.
Bitcoin’s slide was also reflected in the overall market capitalization of cryptocurrencies, which slipped to $198 billion. That figure is almost $7 billion less than the market’s value just two days ago. (See also: Bitcoin Price Hits Record High After November Fork Is Called Off.)
Bitcoin Cash has been on an upward trajectory since last week, after its developers announced a hard fork to optimize its mining algorithm. The hard fork is to be implemented operationally on Nov. 13th. Bitcoin Cash traded at $1,000 when it was launched back in August. However, the currency crashed to price levels of $300 in subsequent months. Since last week, however, its price has skyrocketed by approximately 45 percent. (See also: Bitcoin Cash Set To Undergo Hard Fork.)
In the meanwhile, bitcoin’s path towards legitimization received a boost yesterday after U.S. Treasury Secretary Steven Mnuchin said that the government had formed working groups and was monitoring the cryptocurrency. He is the second person to have spoken out about bitcoin after Citigroup Inc. (CITI) CEO Michael Corbat, who also spoke about the need for regulating bitcoin when it became mainstream.
The chances of that happening seem more likely with millennials taking over from the old guard. According to a new survey, 27% of millennials said they were more likely to put their money into bitcoin than stocks as compared to just 5% for people ages 65 and over.
Added to the change in demographics is increased adoption of the cryptocurrency for daily transactions and investment opportunities. Japan might lead the way. According to Nikkei, the number of stores and merchants accepting bitcoin in the country will increase five-fold to 22,500 by the end of this year.
4,500 merchants and stores in Japan accept #bitcoin. That number could increase by 5-fold, to 22,500 by the end of 2017. Real mainstream adoption in Japan! pic.twitter.com/QwSPWxZ3bw
— Joseph Young (@iamjosephyoung) November 10, 2017
For the short-term, however, bitcoin’s price might fall further. Online publication CoinDesk has forecast a $6,200 target for the cryptocurrency, if it closes around $6,900 within the next hour or so. Or else, it might resume an upward trajectory towards price levels of $7,500.