Bitcoin Plunged Below $10,000 Amid Growing Fears Over SEC Strict Regulation

Bitcoin Plunged Below $10,000 Amid Growing Fears Over SEC Strict Regulation

On March 7, for the first time in a few weeks, bitcoin’s price drastically went down below the margin of $10,000, reaching the low of $9,693. According to several media reports, including CNBC, this change could have been triggered by the recent Securities and Exchange Commission’s statement concerning cyber assets trading venues.

Bitcoin Dropping Significantly For the First Time Since Mid-February

Bitcoin is known as a volatile cyber currency, so there’s no wonder that it has been fluctuating specifically since the beginning of 2018. On February 6, its price reached the bottom of $6,000 after record-breaking $20,000 in mid-December 2017.

Throughout February the crypto-coin was doing its best at recovery, climbing up to the high of nearly $12,000 two times. However, as it seems, bitcoin is losing its rigor as at the beginning of March, just after a few weeks of successful restoration. Only within an hour and a half (between 6 PM and 7.30 PM UTC) on March 7 the king of all cryptos lost nearly $800 in value, getting close to the price of $9,600.

But most remarkably, it kept plummeting since that day, reaching the low of $8,520 on March 9, according to Coinmarketcap.com [updated March 9].

The Reason?

Several media outlets suggested that the reason for such an unexpected drop could be the recent statement released by the SEC. In it, the agency said it is going to require cyber money burses to register with it. Notably, SEC considers virtual assets to be securities.

There is a high probability that bitcoin’s price fell amid the growing fears among traders that the SEC might take a hardline stance on exchanges.

In particular, the agency stated that all platforms, which provide users with the ability to buy and sell cryptos, need to be registered with the SEC. Therefore, they will be regulated as national securities exchanges, or the agency may conclude that specific platforms do not require registration.