Bitcoin Dips Under $7,000 for the First Time Since February

Cryptocurrency giant bitcoin can’t seem to catch a break.

On Wednesday (April 4), the digital currency opened the day’s trading period at $7,417.89 according to data from Coindesk, but quickly slipped under $7,000 to reach $6,743.03–its lowest level sine $6,914.26 on February 5.

Other top cryptocurrencies including Ethereum and Ripple were also on the decline, dropping 7.08 percent over a 24 hour period to $386.01 and 6.37 percent to $0.51, respectively.

CrackedMarkets analyst Jani Ziedins said in a blog post that the market is still in a downtrend and that “there’s no reason to think the worst is behind us.”

“The thing to keep in mind is prices bounce decisively from grossly oversold levels,” Ziedins said. “Expect prices to undercut Feburary’s[sic] lows over the next few weeks and that violation to trigger a large wave of defensive selling.”

Ziedins also added that it shouldn’t be expected that prices will rebound until bitcoin has dropped to the $4,000 range, claiming that “then and only then will it be safe to buy the bounce.”

CNBC reported on Wednesday that China revealed tariffs on 106 U.S. products, which also may have contributed to cryptocurrencies tumbling throughout the day.

Charles Hayter, chief executive of CryptoCompare told CNBC that investors are likely looking for a safer alternative in the midst of trade war fears between China and the U.S.

“In the grand scheme of things, cryptos lie on (the) extremely risky end of the spectrum and are for times of hot money,” he told the publication.

As of 4:21 p.m. EST on Wednesday, bitcoin had made a slight recovery to $6,939.97, representing a 7.41 percent loss over a 24 hour trading period.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.