Today, February 1 might mark another ‘black’ day in the history of cryptocurrencies. On this day first ever mined cyber-coin in the world – bitcoin – achieved the seabed of $8,600, dragging down the rest of the crypto market.
The King Comes Back the Old Price
For around two months bitcoin enthusiasts have not observed a price of the king-coin below $9,000. But on Thursday, February 1 things changed as bitcoin lost as much as 12% within the past 24 hours and is currently traded at $8,812, according to the Coinmarketcap.com.
But the all-day (as well as all 2018) bitcoin low of $8,568 was reached at around 8 PM UTC on February 1, according to Coindesk data. After holding on for a few days, the price of BTC started sweepingly going down after 8 AM the same day.
The monthly graph shows that bitcoin has been ‘aspiring’ to such indicators throughout the past month after it reached the 2018 high of $17,135 on January 6.
The last time bitcoin was spotted at the rate of $8,500 at the end of November 2017. It seemed extremely promising as bitcoin was step-by-step climbing the mountain and, finally, reaching the top of $20,000 in mid-December.
Crypto Market Reacting
As it usually happens, a drowning man always drags the others down with him. So in case of bitcoin’s decline, the correction is what the whole crypto market is supposed to expect (or vice versa). This time, the majority of top-100 coins, listed on the Coinmarketcap.com, have sunk in red, except for DigixDAO, which demonstrated surprising 23% growth and is traded at nearly $286.
In the meantime, other altcoins are showing a 5-25% decline in price. In the top-10 list of cryptos the losers are Bitcoin Cash and Cardano, showing 16% decline, as well as NEM (15%), which recently experienced a historical hacking and lost about $530 million XEMs.
Any Possible Reasons?
Despite the Coincheck crack, which led to the loss of XEM coins worth $530 million, there should be other reasons for the crypto prices falling. Although it is unlikely that South Korean turmoil could have affected it as recently the finance minister of the country confirmed that the government has no plans on banning crypto trading, the Asian market still might impact the crypto world.
And this time it could have been the growing tension from the side of Indian regulators. According to CCN, recently the state’s finance minister Arun Jaitley criticized cyber money while giving a speech in the parliament. The statesman could have triggered a new wave of fears by the following words, which he said when presenting the Union budget 2018-2019:
“The Government does not consider cryptocurrencies as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system.”
Even though Jaitley went tough on cryptos, he did not claim to prohibit bitcoin and its brethren totally, so there is still hope for the cyber money market to recover and be embraced by Indian crypto enthusiasts.
Charts Sources: coinmarketcap.com; coindesk.com