Bitcoin prices drop below $8000 as governments become more cautious
On December 18, Bitcoin had reached a record high of $19,511 and experts predicted that it would cross $20,000. However, it lost more than half of its value since then.
February 05, 2018 / 04:42 PM IST
Unocoin | One of the leading exchanges in India, Unocoin serves a customer base of over a million. It is a member of NASSCOM and has featured among the top 20 out of 350 companies in The FinTech 20: India list. Users are also given a chance to earn free bitcoin by referring the exchange to friends and family.
Continuing its downward spiral, Bitcoin prices stood at 7957.77 USD, as of 3 pm on February 5. In less than a week, it has declined further since February 1, when it dropped drastically and reached its lowest since November 2017 and was priced at $9,100.
On December 18, Bitcoin had reached a record high of $19,511 and experts predicted that it would cross $20,000. However, it lost more than half of its value since then, due to varied reasons.
Globally, governments and financial institutions have expressed concerns over the unregulated nature of cryptocurrency. During the Budget session on February 1, FM Arun Jaitley said that cryptocurrency is not legal tender, which made the graphs worse for Bitcoin prices. The finance minister also said that the government may crack down on cryptocurrencies, to eliminate illegitimate activities in crypto-assets.
The case of a $500 million heist in Japanese cryptocurrency, following India’s harsh comments, had made many Asian countries, including South Korea, uneasy about the rise of Bitcoin.
Growing concerns about security and hacking and manipulation of prices, along with speculation of this being a bubble were fed by the governments’ comments across the world. Facebook banned ads of cryptocurrency last week.