Bitcoin price drops below $10,000
Bitcoin price drops to $ 10,000 at around 6: 50 am, this Wednesday. The week has been seeing a downward trajectory of Bitcoin price, falling nearly 30 percent. This morning, it has been its lowest since 30, November.
Bitcoin price drop
The week has been a major disappointment for many while a golden opportunity for others. Weekend noted Ripple price crash , dropping Ethereum prices and this time its Bitcoin hitting an extreme low. The virtual currency opened at $10,000 followed by a drop of about $1,600, marking $9,702.
Earlier this month, investors celebrated Bitcoin price rally with its all-time high of $19,343 but gradual decline brought it down to an unfortunate low price. The crash has been almost 47 percent from its all-time high. Such crackdowns have resulted in wiping off of more than $30 billion of the cryptocurrency’s value.
Reasons behind Bitcoin price drop
The major cryptocurrencies of the world like the Bitcoin have always been volatile. Fearing this volatility and the susceptibility to being used for illegal purposes, various countries have issued strict regulations, warnings, and imposed a ban on crypto trade. Although the exact cause behind the price drop isn’t clear, analysts believe that it is the imposition of tighter regulations by the biggest cryptocurrency markets like South Korea, responsible for the crackdown.
Following the league of countries cracking down on cryptocurrencies, Russian President Vladimir Putin also discussed the risks associated with cryptocurrencies. He suggested that considering the financial security issues, Russia will definitely be requiring more regulations in near future.
“It is known that the cryptocurrency is not backed by anything. It cannot be a store of value. No material valuables are behind it and it is not secured by anything,”- Putin.
“…In broad terms, legislative regulation will be definitely required in future. - he further added.
However, other analysts believe that “volatility” is normal for the world of virtual currency. Mati Greenspan, a Tel Aviv-based analyst at investment firm eToro said:
"Volatility is quite common in the cryptocurrency world," "The action we're seeing may seem dramatic but is really quite normal for this market. All in all, this drop has brought us back to the prices that were traded about a month ago for most coins." - Greenspan, told CNBC.