Bitcoin, the first cryptocurrency that has been financially lauded through out the world with its underlying concept, Blockchain, has been responsible for financially empowering a lot of individuals as well as companies.
However, it seems even the BTC enthusiasts have withdrawn their unwavering support towards the cryptocurrency. Evident from its price dip from nearly $20,000 in December of 2017 to roughly $8000 now.
Many BTC trading opportunities as well BTC exchange platforms have suffered as a result of the bitcoin price hitting a never expected low. And people can not seem to comprehend as to why this exactly happened, keeping in mind the good will and credibility of the bitcoin.
There have been mainly 3 reasons for the Bitcoin’s slow dive.
Most governments across the globe, specially 2017 onwards began to regulate the cryptocurrency industry in the wake of the undying interest it was receiving from people. Thus, this was to protect investors from any scams as well as to collect tax revenues.
Some countries acted swiftly and harshly. China set a sweeping set of bans into motion that ultimately outlawed domestic crypto exchanges and ICOs.
Read : China Makes Another Move to Clampdown Cryptocurrencies
The United States has acted rather slowly and steadily to regulate crypto. There haven’t been any real new regulations formed to cover crypto specifically, although the SEC, the CFTC, and other governmental branches have made (somewhat contradictory) statements about which existing laws apply to crypto.
In addition to government regulations, companies like Facebook, Google, and Twitter have taken it upon themselves to prevent customers and users from using cryptocurrency services. And all three came together bringing out the decision to ban the crypto-based and ICO based ads.
Read : Ban on ICO and Crypto Ads starting from June, says Google
Facebook was the first of these firms to make the decision, announcing its discontinuation of crypto ads at the end of January. Google followed in mid-march”../twitter-bans-crypto-ads/” target=”_blank” rel=”noopener noreferrer”>. Twitter announced its decision on Monday, March 26. Within 24 hours of Twitter’s decision, the price of a single Bitcoin had fallen by more than $600.
Self-regulation has also been something of a trend in the banking industry. Banks the world over have issued warnings to customers about investing in cryptocurrencies. However, it does not appear that these measures have caused much movement in the price of bitcoin.
Ever since the concept of Bitcoin and Blockchain came to the market, the cryptocurrency investment has become a global movement rather than just a hobby of investing your money.
Words and opinions have significant and immediate effects on the price of Bitcoin. This phenomenon often causes self-fulfilling prophecies; if a major news source reports that the price of BTC is headed upward, investors rush to buy BTC, which then causes the price to move upward.
The same can be true of negative press–the falling price of Bitcoin could be a self-fueling implosion. The more that BTC PRICE falls, the more that people say that BTC is going to fall. Then, more people who are worried about losing their funds sell their coins. The price falls, and the cycle continues.
Hence the above three factors have been believed to majorly drive Bitcoin price towards the lower end of the market price.
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