Bitcoin is one of the rising concerns with bigger parameters and had the capability to become the biggest cryptocurrency, but has fallen down by 15% taking the digital coin to reach to its lowest for the year 2018.
On 18th December, Bitcoin broke the record until now and reached as high as $19,511 but slowly it lost more than half of its value. The factors behind this fall are, there was a fear of price manipulation, the token weighed less than the expectations of more government oversight, the sensitivity of exchanges towards hacking and slow concern as it was like an asset bubble.
More important, the Facebook also declared a ban on all ads of cryptocurrency. The chief executive officer of trading platform, Ron Chernesky, stated that, price of the bitcoin and other cryptocurrencies is falling because Facebook implemented ban on cryptocurrency ads, which makes investors more tensed.
In November, Bitcoin has fallen to its lowest as $8,449 which has put a stoppage or a limit on cryptocurrencies in India. So we can say there was a series of negative headlines, and also not to forget, last week there was a $500 million raid from a Japanese cryptocurrency exchange. In this fall, about $100 billion wiped out in global cryptocurrency market and while this article was being written, selling of price of BTC was $8,205 in CMC site.
Andrew Se, cryptocurrency trader and co-founder of research website Cryptoprofile.com said that the past week indeed was like a nightmare as it had all bad headlines including the news about India’s cracking down on cryptocurrencies. He further assured that they are making corrections.
Last year, Bitcoin had a rise of 1400%, resulting in accumulation of wealth of around $200 billion for investors, but in January it met with a setback of 30%. According to the price data given by the Coinmarketcap.com it was record breaking for the digital currency to lose in market value by $44.2 last month.
On Thursday India’s finance minister Arun Jaitley presented the union budget 2018-2019 and made announcement in New Delhi, that in India cryptocurrencies are not considered as a legal tender and government will take necessary steps to remove the use of these assets as a part of the payment system or in financing illegal activities.
South Korea has banned anonymous trades and exchanges, and there was a setback in Bitcoin’s future contracts launched in December by US exchanges and last year China already started a move in this area.
Naeem Aslam, the chief marketing analyst in London also agreed that such news are long –term positive. According to Bloomberg, now the investors are at ease as there will be a controlling structure around all this which will add to their confidence in such type of technology.