As January is over, bitcoin fell to 9,000 dollars (approaching 8,000 dollars in the early days of February). Especially hard was a month and a half for bitcoin, if you consider that in mid-December, the coin reached a maximum of $ 20,000.
The market has taken a hit after hit in the first days after its downward spiral from the above high, the only problem is that some of these factors catalyzing were paper tigers or even worse, fake news.
In a speculative market, such as Bitcoin, who welcomed a massive influx of relatively ignorant speculators into the hype, to $ 20,000, the bad news is especially bad news and the harmfulness of investor confidence.
These losses stem in part from new regulations in South Korea, Facebook’s announcement that it would ban ads for the digital currencies and Indian government said it would ban all cryptocurrency trading.
Bitcoin fell in price by more than $ 44 billion in January, noting the steepest monthly decline in a short history.
The last fall comes after news that one of the largest exchanges of cryptocurrencies is being investigated by US regulators about its links to a digital asset, which as detractors can inflate the cost of bitcoins by billions of dollars.
South Korean confusion
Halfway to January there was confusion which originated from South Korea, an important center of bitcoins in the east, as the Ministry of Justice, which independently announced its plans to prohibit the trade in crypto-currencies.
This caused panic in the markets, just as China announced a ban on plans.
However, since then it has been clarified by much higher authorities, and in fact the mood from South Korea was quite positive after this market fright. In fact, this step was even classified as insider trading, as many fought off the alleged planned FUD attack.
Regardless of the clearing and clouds flying over the Asian nation, the damage was still inflicted. The markets managed to push back a little, but soon more serious news of dubious honesty appeared to send speculators fleeing.
Read it correctly
The latest attack of disinformation, which had its say in the markets, came out of India
The mainstream media, hastening to receive news, seemingly misinterpreted the government’s speech on regulation. The line in question, from Finance Minister Arun Jaitley, reads:
“The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system.”
However, it was blown up: “Arun Jaitley has just killed India’s cryptocurrency party”, in a Quartz article on the matter.
The line in the equation states that regulators in India seek to exclude the use of cryptocurrencies to finance illegal activities, but avoid mentioning the complete validity of digital currencies.
Many hope for one positive to correct all the mistakes that have been aligned in the digital currency, and that the market reacts accordingly. However, what that news could be remains a mystery.