The decline in Bitcoin prices could be even worse in the coming months. The reason, this digital currency (cryptocurrency) has no fundamental value.
This is the result of published Capital Economics research.
The London-based company said the price of Bitcoin Cs has been sufficiently correlated with the S & P 500 index since its price has dropped from the highest price at the end of 2017.
But in my opinion this correlation is only coincidental and related to certain factors. The recent decline in Bitcoin prices is due to increased investor concerns about regulatory tightening, banning cryptocurrency ads on social media and some banks that prohibit the use of credit cards to buy Bitcoin Cs.
The stocks have been hit by fears of a US-China trade war that continues to intensify. "In other words, the factors that drive Bitcoin prices are still somewhat different from other asset driving factors," said Capital Economics as quoted by CNBC International.