5 Key Reasons Why Bitcoin and Other Cryptocurrencies Went Under!
It has been another week of wide fluctuations in Bitcoin and other cryptocurrencies' prices, with this one being a downward trend. According to Coinbase, as of right now, Bitcoin has lost 36.20% for this month. Did this loss mark the start of the cryptocurrency bubble bursting? Below is a graph that compares Bitcoin with other bubbles in our history.
And here are 5 reasons why Bitcoin and altcoins went under.
1. South Korea contemplates banning Bitcoin exchanges.
Park Sang Ki, the countries' justice minister, said there were "great concerns" about digital currencies and that his department was preparing a bill that would ban trading in all of them. Officials have also floated the idea of taxes on crypto trading and other measures to tighten its grip on market considered by some as supporting money laundering and dangerous speculative investing. By some measures, South Korea represents about a fifth of the virtual-trade volume.
2. Russian president Putin said regulation is needed in the cryptocurrency market.
This is the prerogative of the Central Bank at present and the Central Bank has sufficient authority so far. However, in broad terms, legislative regulation will be definitely required in future.
3. Bitcoin trading could be banned in China.
Last September China has already banned domestic exchanges and ICOs.
However, according to coinmarketcap.com, BitConnect gained 90.46% in the last 24 hours.
- Bitcoin futures are set to expire this month.
January bitcoin futures US:XBTF8 on Cboe Global Markets Inc. CBOE, +1.06% were set to expire on Wednesday, down 42% over the past 30 days at $10,447, while those trading for the same month BTCF8, +5.07% on the CME Group Inc. CME, +0.50% are due to expire on Jan. 26. Those futures also are down about 42% at $10,455. Expiring futures contracts, in theory, can add to volatility.
What are your thoughts monkeys? Is this the starting of the bubble burst, or a temporary price correction? Do you believe Warren Buffett is correct in saying that Bitcoin and other cryptocurrencies will for certain come to a bad ending? Which cryptocurrencies are you invested in or are you bullish on?
Very informative post. I personally think a lot of people are shifting away from Bitcoin as the hype is dying down. I could be wrong but I think the lower price is a better reflection of what the coin is actually worth.
Google Asian migration and bitcoin fall. Blow your mind brah
The initial wave of Bitcoin futures already have expired
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