Bitcoin, the largest cryptocurrency suffers a huge blow and bitcoin price drop down to $6,240. Amidst Asia’s tougher regulations on cryptocurrencies, it fell to its three-month lowest. It has been believed that this sell-off is the after effect of equity market meltdown. However, the crypto market has good news as well in the form of US, Australia and Singapore’s positive remarks on crypto.
Bitcoin price drop down 24% to $6,240
Today, Bitcoin plunged 24 percent and came down to its lowest in the last three months. This has been the sharpest loss that is following a series of setbacks in the cryptocurrency market.
Since mid-November, this is the first time that the virtual currency has fell down to below $6,300. Last year, this currency saw a huge rise of about 26 fold.
It’s been only six weeks when bitcoin hit a record high of $19,511. Today’s collapse is basically fueled by tons of speculators that are looking to a make just a quick buck. It has also been believed there would be another fall coming up.
Alternative cryptocurrencies such as Ripple, Litecoin and Ether also dropped about 6 percent from their values in December.
Government Backlash & Dow’s Bitcoin Impression
This tumbledown is the result of backlash from government regulators and banks. The quickly changing mood is no doubt due to the recent regulatory scrutiny from South Korea, China, and India. Tax evasion, money laundering and heavy speculation surrounding the use of cryptocurrencies are the major concerns of the countries at this point.
The sell-off was further accelerated by the huge losses in world stock markets. The Dow Jones exchange the on Wall Street also suffered its biggest one-day points loss by losing 1,175 points. It wiped out all of its 2018 gains.
Equities had pretty good months of optimism on corporate earnings and US economy. However, this global rout came as the panicked investors grew concerned over the rising US borrowing costs.
Good News: US “open” to regulations and Australia & Singapore favors bitcoin
Though there has been a backlash from some governments, it’s not all negative. Australia’s Major banks confirmed that they are not banning the purchase of bitcoin.
According to ANZ, one of the major banks: It “does not prohibit customers buying digital or cryptocurrencies, or accepting them as a form of payment.”
A spokesperson from Westpac bank commented with a simple:
“We currently have no restrictions on credit card use to purchase cryptocurrency.”
Moreover, the US is also open to exploring the cryptocurrency regulation as stated by Clayton who will testify in the Senate Committee over virtual currency hearing:
“As [CFTC] Chairman Giancarlo and I stated recently, we are open to exploring with Congress, as well as with our federal and state colleagues, whether increased federal regulation of cryptocurrency trading platforms is necessary or appropriate. We also are supportive of regulatory and policy efforts to bring clarity and fairness to this space.”
Furthermore, Singapore’s Deputy Prime Minister Tharman Shanmugaratnam declared that its central bank has been studying the potential risks from cryptocurrencies but in the absence of any strong case, as of yet, there will be no ban on the trading of digital coins in the state.
So, there’s a potential in the cryptocurrency market to recover their losses. What do you think of this huge bitcoin price drop? Let us know your thoughts in our comment section below!
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I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.