Last year, cryptocurrencies has reached to a great level, as against this, for the first time since November, for the fifth day Bitcoin has dropped down less than $7,000 as a result of which other digital currencies has also lowered down with it. (Bloomberg)
As per Bloomberg pricing, at 4:08 p.m. in New York the biggest digital currency traded at $7,054 but unfortunately, it dropped as much as 16% to $6,456. In December, it made a record as high as $19,511 which has been removed about 65% of its value. Other competing coins also moved back on Monday as Ripple lost as much as 21% and other coins as Ethereum and Litecoin also became weaker.
A senior analyst Lucas Nuzzi, at Digital Asset Research, wrote in his email that, the growth this market has gained until now had to stop or rather slow down at some point. He further added that this was a large lot of sell orders, and perhaps this crack was not a result of any type of fundamental change.
A chain of negative news and also other commercial obstacles are the reasons for lowering down the digital coins. Lloyds Banking Group Plc (LON: LLOY) said that they have merged with a big credit-card issures and have stopped the purchases of cryptocurrencies on their cards, which includes JPMorgan Chase & Co (NYSE:JPM) and Bank of America Corp (NYSE:BAC). Their intention is only to save their customers.
Jay Clayton SEC Chairman was very supportive and said that the present rules were not designed keeping in view such type of trading and assured his support to the efforts made to bring transparency in cryptocurrency issues.
Bitcoin is facing a very long series of setbacks from Christmas and this event has matched with declining other risky assets and stocks throughout the world. Some are still supporting Bitcoin and and are of the opinion that Bitcoin has so far been fighting and has matched its level with gold as a store of value. Other safe havens as the yen, Swiss franc and bonds also profited.
All over the world, the officials are getting control over the market and trading. According to a morning post report from South China, China will try to remove all speculation from the market by blocking all websites, including foreign platforms that are connected to cryptocurrency trading and also the initial coin offering.
As per Yonhap News, there is a mess between North Korea and South Korea, as the news said that North Korea has hacked all the programs related to South Korea’s cryptocurrency and has stolen about ten billions of the digital currencies. But still some supporters of Bitcoin did not bother about this. Kyle Samani, the managing partner at crypto hedge fund Multicoin Capital wrote in his email that the time period from November to January was quite vigorous.