01 Feb Bitcoin Value Halves in January. What’s Next for the Cryptocurrency?
Bitcoin value halves in the first month of 2018. Despite an incredible 2017, this January has been the worst month for Bitcoin. Bulls provided a lot of support to Bitcoin (BTC) price by presenting different theories and hypothesis that it is becoming a million dollar investment, ultimately though, bears controlled the price since the start of this year.
Bitcoin started this month trading around the $14,000 level with the price hitting a monthly high of $17,500 on Jan 5. Since then, however, bitcoin’s value has declined at a sharp pace. At the time of writing, bitcoin is trading around $10,300, down 6% in past 24 hours.
Source Image: coinmarketcap.com
So, what has Caused Bitcoin’s Value to Half?
There are two major reasons. The volatile nature of bitcoin’s price leading to panic sell-offs, and the possibility of cryptocurrency regulations.
Overall, the huge volatility in bitcoin price has reduced its market capitalization to $171 billion. From its all-time high of $332 billion, this is a loss of almost half of its value. Although analysts are impressed by innovative blockchain technologies, the future of bitcoin depends highly on regulatory requirements. Several countries have begun deliberating about cryptocurrency regulations.
Along with regulatory concerns and poor feedback from major analysts, the efficiency of bitcoin blockchain technology has significantly impacted the price. Stripe has announced an end to its support for the coin, while several other companies including MoneyGram, MercuryFX, and others have begun supporting Ripple’s xRapid product instead.
Facebook has now also announced to ban ads promoting digital currencies, binary options, and initial coin offerings, warning: “They’re frequently associated with misleading or deceptive promotional practices.”
The bitcoin crash amplified further since the start of this week, due to reports that the U.S. Commodity Futures Trading Commission sent subpoenas to Bitfinex and Tether, who claimed that the coin is backed by the dollar. Moreover, lower trading volume from South Korean markets after the implementations of new rules has added to traders concerns.
The U.S. government has been showing their concerns for fake ICO’s; a number of companies are announcing initial coin offerings to raise the money without any business behind it. Useless Ethereum took the crypto market by storm last week, despite being totally useless.
The U.S. Securities and Exchange Commission announced a strong crackdown on the illegal use of cryptocurrencies and fake ICO’s. The U.S. SEC has also announced to freeze all the assets of a Texas-based initial coin offering that claimed to have raised more than $600million.
So, despite the many reasons behind bitcoin value halving in January, what do you think? Is there room for a comeback?
Featured Image: Depositphotos/© rastudio