After a continuous period of relative stability, Bitcoin has seen a significant loss over the last weeks. World’s most significant cryptocurrency was seen falling below $7,000 in the last couple of months.
This fall had two major reasons – first, it was revealed that the heights Bitcoin achieved last year were artificial, second, a hack on the South Korean exchange. Since December 2017, the price of cryptocurrency was fallen quickly after it reached the peak of $19,850. Since then, Bitcoin has seen many quick rise and falls.
The price of it came back to earth when the banks and governments raised the cloud of future regulations in January and February. Before, another downfall occurred in the price of Bitcoin as at one point $2,000 dropped in just one hour. The price then bounced back before it tumbled again in January. The prices began to settle again but then dropped again at the start of February.
Then in March, prices went below $10,000, reducing to $6,500 and then moving up to $7,000 mark. Apart from the future regulations aspect, a series of unfortunate incidents have caused a major downfall to the prices.
The most recent attack of the series was a Binance cryptocurrency exchange. Back in March 2018, Bitcoin was targetted by thieves but luckily the attempt went in vain as the thieves themselves lost the money during the attempt. Changpeng Zhao, the CEO of Binance said in a Twitter post that all the many were safe and no harm was done. Next morning, the news about the raid took the internet by storm as Reddit was flooded with the Binance attack.
Google too has a major role in taking the prices down as the search engine announced in June to ban all the advertisements related to Bitcoin as according to the search engine the ads are deceptive. The announcement was made in March 2018 as a way to tackle emerging threats.
In a blog post, it was stated that the company is banning all kinds of deceptive material from the site in order to improve “ad ecosystem.” Google was then joined by Instagram and Facebook in blocking Bitcoin ads.
These changes show that how quick things can change for an investor. According to Coinbase, the worth of Bitcoin is $6,443. Since the same time yesterday, its value has been dropped by 1%. And as compared to last week, its price has been dropped by 5%. The valued dropped to 21% as compared to the last month stats.
There was a noticeable increase in other digital currencies due to the rise in Bitcoin’s value last year. Many investors started investing in other digital currencies like Ripple, ethereum, and litecoin. Unlike Bitcoin, all these currencies have performed well recently. According to CoinMarketCap, ether, the coin of Ethereum, has a total value of $76.5bn as compared to bitcoin who has $178bn. Although it is a long way behind Bitcoin but is impressive due to the fact that it was launched in 2015. Other digital currencies like Ripple who has a net worth of $10.5bn and litecoin with the net value $35bn, are also doing well.
According to the speculations, the cryptocurrency’s price will rise to $1m again. It is important here to note that Bitcoin has no central bank and not regulated by the state. However, the record of every bitcoin transaction is stored on a ledger also known as a “blockchain”. Bitcoin is also attractive for the cybercrimes as its transactions are irreversible.
The massive tumbling of 15% was the highest since the future trading was introduced in December. According to Coinbase exchange, the value of the cryptocurrency was $16,998 in December 2017 morning time and then fell down to $16,240 by afternoon time.
CNBC reported that The US Securities and Exchange Commission, a trading company in the US, suspended temporarily after the rapid fall in Bitcoin value. According to the experts, the value of Bitcoin currency is highly volatile and a continuous fluctuation is expected in it.