Market - - Feb 05,2018
On Friday, Bitcoin charged below $8,000, recording a massive 60 percent drop from its highest mark two months ago; other small cryptocurrencies also experienced a dip.
On Friday, the value of Bitcoin fell below $7,910 as recorded on the Bitstamp exchange; this was a 12% fall since the day before. This present value is significantly shorter as compared to $19,000 which was recorded in November 2017.
This downfall comes when a number of incidents have occurred across the globe leading to disturbed faith in cryptocurrencies.
Further, the cryptocurrency markets were united by the U.S. stock market. On Friday, the Dow Jones Industrial Average dipped more than 650 points, concluding its worst week since the past years.
The price of Bitcoin is however still higher by 760 percent in the past 12 month, also with other cryptocurrencies experiencing similar increases. Also, it cannot be forgotten that around $100 billion has been removed from the sizzling crypto market in the past one day.
Japan's financial regulator on Friday carried out a sudden check on the chief Japanese exchange, Coincheck. The regulator told that it had asked the exchange for correcting the flaws concerning their computer networks, since last week's hacker theft of $530m (digital money) has been a serious issue. Moreover, Facebook also announced that it would prohibit adverts for digital currencies.
It has been noted that, other countries have been active in expressing concerns about such monetary units. China and South Korea have already banned the launch of any new virtual currency and are working to shut down exchanges through which they are traded.
Furthermore, any small activity from governments is expected to create a panic situation. Nick Colas at DataTrek Research said, “Crypto investors will just have to get used to more critical headlines from regulators".