Analyst said Global Regulation is the Cause for Recent Bitcoin’s Downward Trend.
Cointime (February 05) —According to Bitfinex data, at February 4th between 3:00 AM to 6:15 AM EST bitcoins’ price rose from $9,068 to $9,369. After that, the value began to drop. At 20:30 it hit the lowest point at $7,809. After that, the value remained around $8,100. It closes on February 5th at $8,090.
Bitcoin’s value has been on a downward trend. Starting from January 31st Beijing time, bitcoin’s value first dropped below $10,000. There was a slight increase in February 1st’s morning. However, that afternoon, the price began to decrease again and hit below $9,000. February 2nd, the value dropped even lower to $8,000. At Beijing time February 5th, bitcoins remain around $8,000 while other cryptocurrencies value fell dramatically. Amongst the major 100 cryptocurrencies, there were only two currencies that rose. It seems like the value to continue to decrease for now.
Between January 2018 and today, bitcoins been on a downward trend. This round of decline was likely affected strict regulations happening around the globe. The South Korean government announced they are taking tougher measures to monitor cryptocurrencies, include the real-name system for cryptocurrency transactions. The United States is also promoting a real-name system for cryptocurrency transactions. They are also developing a roadmap for regulation of virtual currencies. Japan is also conducting compliance investigation on the Bitcoin Exchange.
Yesterday, the Financial Times issued a document that showed a trend of more and more regulations. A number of regulatory measures will be taken on domestic and foreign ICO and cryptocurrency transaction, including banning the existence of relevant businesses, banning and disposing of domestic and foreign cryptocurrency exchange platform.
The plunging value must have been a difficult test of faith for the investors. Some will decide to leave, and some will wait and see. However, before the globe can create a unified regulatory system, bitcoin’s value will remain turbulent. After all, the trend of regulatory policy has a great impact on the development of Bitcoin.
Executive editor： Angel