Bitcoin downfall below $7,000 in Asia

On March 29’s morning, the world’s biggest cryptocurrency by market value plunged beneath the $7,000 mark in Asia, the first time it is breached that level since early February, as per Bloomberg’s data.

It fell as low as $6,912 before bouncing back, trading at $7,094 as of 7:50 a.m in Hong Kong. The moves took the token’s losses in 2018 to a massive 50%, and other digital assets, including rivals Ripple and Litecoin, collapsed more.

Additionally, regulatory pressure is increasing in the cryptocurrency space, while vital social media platforms are isolating themselves from the industry. Reddit Inc., a community hub popular in the crypto community, denied acknowledging payments made in Bitcoin, while Twitter Inc. confirmed on March 26 that it is forbidding advertisements for initial coin offerings, joining Facebook and Google.

Most alarming news for the market is sales of Bitcoin held by the trustee of Mt Gox, the now- non-functioning Japanese exchange. The trustee sold around $400 million in Bitcoin and Bitcoin Cash in a recent couple of months to pay back the exchange’s creditors, as indicated by recent reports. The trustee had said that he will sell more of the cryptocurrency he holds. Since early March, he was sitting on more than $1 billion.

“Bitcoin is under selling pressure again and chances of its recovery are looking slim,” Naeem Aslam, the chief market analyst at TF Global Markets, said in a note. It has “slid significantly, since the tech giants’ ban on ICOs,” he noted.

The droop this year is its biggest quarterly decrease ever since 2011. Bear in mind that Bitcoin rallied 1,400 % last year.

(Source: www.techgig.com and bloomberg)

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31-03-2018 12:57 am