Major digital currencies have drifted into the red in Wednesday afternoon trading, erasing gains from the prior session. Bitcoin, the worlds biggest digital currency, continues to lack direction, hovering around $7,500.
The lack of activity and inability to recover losses early in 2018 prompted research firm Trefis to lower its year-end price target for the No.1 digital currency. “Adjusting our forecast for transaction volumes in our interactive Bitcoin Price Estimator now leads to a year-end price target of around $12,500—down from our earlier estimate of $15,000,” or about 17%, according to Trefis in a June 5 research note.
“The global cryptocurrency industry has seen a flurry of new developments since December. Many of these developments had a negative impact on the growth prospects of cryptocurrencies, like restrictions by banks on the use of credit cards to buy cryptocurrencies, and calls by financial regulators across the world for caution while investing in digital currencies.”
The Trefis Price Estimator tracks the current price trend with two inputs; daily active users and daily transaction volume and according to its website has an accuracy rate of over 94%.
A single bitcoin
was last valued at $7,516.94, down 1.4% since Tuesday 5 p.m. Eastern Time on the Kraken cryptocurrency exchange.
Altcoins and futures off to a quiet start
Major altcoins, or coins other than bitcoin, are also in the red. Ether
is down 2.2% to $595.00, Bitcoin Cash
has lost 3.9% at $1,106.90, Litecoin
is lower by 1.6% at $119.25 and Ripple’s XRP coin
is down 2.6% at 66 cents.
Bitcoin futures have given up early morning gains. The Cboe June contract
is down 1.4% at $7,520, while the CME June contract
is lower by 1.1% at $7,540.