Down by almost 11 percent over the last week and trading at $56,868 at present, Bitcoin has reportedly lost almost 20 percent in less than 2 weeks, Bloomberg reported.
But volatility is pretty regular and corrections are no cause for alarm. In fact, even within the last 24 hours, Bitcoin fell by almost 3 percent, declining consistently for the 6th consecutive day. This, just days after it hit an all-time high of $68,789.63 on 10th November, 21.
A lot has been transpiring on the crypto front, both nationally and internationally. While India is currently deliberating the crypto legislation, which may be tabled during the winter session of Parliament, many prominent Indian exchanges in this space have decided to hit pause on their public-outreach campaigns. There are speculations that crypto will be regulated as an asset class, and it is unlikely that it will be granted transactional permission.
As various stakeholders await clarity on crypto, Invesco Mutual Fund decided to defer the launch of its SEBI-approved CoinShares Global Blockchain ETF Funds of Funds, citing the same reason.
Internationally, many bitcoin enthusiasts are looking forward to the now-bankrupt Mt.Gox fiasco payout, which comes seven years after the exchange was hacked and 8,50,000 BTC were stolen, 80 percent of which belonged to the customers. The recovery, though fractional with total repayment coming to just 1,50,000 BTC, will be done in a phased manner. It could significantly increase bitcoin supply in the market, flaming fears that Bitcoin prices might crash further.
In addition to this, the SEC (Securities and Exchange Commission) rejected a proposal to list a Bitcoin ETF, namely the VanEck bitcoin fund, by Cboe BZX exchange. The ETF was to track the price movements of the world’s largest cryptocurrency, but SEC vetoed that proposal citing inadequate measures to protect investors from fraudulent practices. Also, with China clamping down hard on crypto mining to reduce the country's carbon footprint and become energy-efficient, and IRS (Internal Revenue Services) considering seizure of cryptocurrencies worth billions of dollars linked with tax fraud and other crimes, the crypto prospects might look glum but think again!
Despite the 17 percent fall after hitting a peak, Bitcoin still commands a bullish conviction, with experts predicting a sharp pullback of the transient sentiment with fundamental drivers looking incredibly positive.