New York City, NY – Cryptocurrencies’ bearish start in 2018 continues to drop and send Bitcoin spiraling down to its lowest since October. Traders are driven to sell as Bitcoin dips due to heightened speculations for tighter regulations, among many.
The most prominent digital currency, Bitcoin, fell by 8.8 percent at $6,477 by 12:03 p.m. London time. According to Bloomberg composite pricing, it recorded an all-time low in Bitcoin’s price history as of 9:12 a.m. New York time today as it dropped to as much as 17 percent at $5,922.
Other digital currencies such as Ripple, Ether, and Litecoin tumbled alongside Bitcoin’s dropping by at least 9 percent. A series of unfortunate news significantly influenced this chain effect in the cryptocurrency market.
Senior market analyst Craig Erlam shares that the continuing selloff is due to several adverse reports. These include regulation speculations among countries, the bitcoin wallet hacking issue, the Facebook ban, and the story on Tether.
The crypto market especially feels the pressure of regulating bodies overseeing their transactions. In the United States alone, two influential stock market watchdogs are eyeing to seek the Congress’ help to consider federal oversight of the gray areas in cryptocurrency operations.
Agustin Carstens from Europe also argues that the various government bodies should watch over the digital currency. He firmly believes that there is a high chance for authorities to regulate the cryptocurrency trading platform to protect the already established financial system.
Carstens said in his speech in Frankfurt that Bitcoin is supposed to be an alternate payment system minus the government intervention. However, it has now become a combination of what investors fear the most – an environmental disaster, a Ponzi scheme, and a bubble just waiting to burst.
Experts believe that the downward trend in Bitcoin will not stop anytime soon. In fact, the Moving Average Convergence Divergence (MACD) indicator proves the continuous decline of cryptocurrencies.
From its bearish trend in December 2017, the cryptocurrencies’ selloff continued to drop to about half a trillion dollars’ worth of digital coins. Bitcoin’s market value, together with the other cryptocurrencies, have decreased by more than $500 billion since the new year started.
After more than two years on Tuesday, Bitcoin sank well below its 200-day moving average. Factors leading to Bitcoin’s great loss over time include speculations in the tightening of government oversight, investors’ concern on the unjustified meteoric rise, and purchases being put on hold by credit-card issuers.
As a result, extreme fluctuations in Bitcoin and the crypto market are inevitable now. Erlam from Oanda even sees this phenomenon as a possible way back to the real value where Bitcoin should be.