Bitcoin might be the largest crypto currency that is there, but a blood bath is near as several tokens fall to zero levels, including this largest crypto currency whose value has fallen the most since the month of November 2017. The reasons are several, one being the intense scrutiny by regulatory authorities on the trade and exchanges of crypto currencies as well as exchange hacks that have also hurt the demand of this crypto currency.
Movement of Bitcoin price
There had been a high achievement in its value in December 2017 after which it has come down by about 70 percent. There was recently a slide by four consecutive days, which happened and this slide is being compared to the 78 percent plunge that came by from peak to trough levels in the NASDAQ Composite Index after the dotcom bubble in US was burst. Virtual coins of different kinds fell to zero, which followed the same path as the legendary fall of Pets.com as well as other public initial offerings that had been red hot and which flamed out as quickly by the early part of 2000.
Salient nature of Bitcoin
Bitcoin however, has suffered bigger losses than this before and has bounced back as well. Hence the same can be repeated and the world that knows the volatile nature of crypto currencies would still remain invested in it. Bulls also point out that the NASDAQ had eventually recovered and institutional investors are nowadays the biggest pool of buyers in this market, though many are still hesitant to come in due to security and regulatory concerns.
The market needs to reverse before institutional money piles in which are the view of the authorities who are part of the blockchain world. Indeed, many bubbles have been created around Bitcoin and it still holds on which indicates that investors faithful to this crypto currency will stay invested.
After the recent slide in its valuation as it currently stands at $5791, this is the lowest level that it has come by since the month of November. The crypto currency has recovered partially and stands at $6397. Bitcoin however, has come down by 55 percent as per an analysis done by Bitstamp. The valuation of other coins like okcoin, Litecoin and Ether has also fallen and the combined value of the tokens has declined to $236 billion while at the peak the valuation was about $830 billion.
Reason for the drop
The drop and why it occurred can be attributed to hacks that occurred at two exchanges in South Korea and regulatory clampdown that happened in Japan. These aspects have weighed on the market sentiment for some time. Regulators are also stepping up scrutiny of exchanges and trades in crypto currencies that are found to be breeding ground for illicit activities such as fraud, market manipulation and money laundering.
Many experts warn that Bitcoin valuation would go down further even if it does not reach zero level. They also warn against a dot com mania being developed around the crypto currency scenario in the current blockchain world.
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