Bitcoin is in Freefall, Goes Under 12,000

Bitcoin Picture
Bitcoin Picture

Bitcoin/CC

Bitcoin and other cryptocurrencies, which had flamed late last year, all plunged on Tuesday by double digit percentages, which analysts explained among other things by an increased willingness to regulate the sector.

Bitcoin “has passed under the $ 12,000 mark, unheard of since early December,” noted Tuesday morning David Madden, analyst at CMC Markets UK. Shortly before Christmas last year, the cryptocurrency came close to the $ 20,000 mark.

All cryptocurrencies were affected by the decline, according to the trading platform coinmarketcap.com. Ethereum, Ripple and the Bitcoin Cash lost respectively 12.41%, 19.16% and 15.51% early Tuesday.

According to analysts, this fall is explained in particular by the indications of a hardening of the authorities with regard to cryptocurrencies, in particular in South Korea and in China.

“Explaining the movements of bitcoin is always tricky, but this plunge (…) could well be explained by the signs of increased regulatory will” of the authorities, wrote Tuesday morning Neil Wilson, an analyst at the broker ETX Capital.

The South Korean government said last week that Seoul was preparing to ban cryptocurrency trading platforms, before backtracking and saying it was only one of the measures being considered by the Ministry of Justice.

South Korea “is home to some of the biggest bitcoin exchange platforms,” ‚Äč‚Äčanalyst firm Capital Economics said on Tuesday.

Must Read:  Beef Imports From Brazil Banned by the US

The coins are also suffering from rumors that China is preparing to implement a complete ban on bitcoin mining, the computer activity behind the creation and transactions of Bitcoin.

Eid Lee

Eid is a freelance journalist from California. He covers different topics for The Talking Democrat but focuses mostly on technology and science.