There is no denying that the past few weeks have seen Bitcoin suffer the most. In addition, unending fear, uncertainty, and doubt (also known as FUD) have become the order of the day amidst media sources reporting the Crash of Bitcoin. Needless to say, it is neither the first nor the last time that we will see these dips, but the recent hit has led some new investors to swallow a bitter pill while others wait to buy more cryptocurrencies. In the wake of all this, banks in the US have moved to ban cryptocurrency purchases using credit cards.
For veteran Bitcoin enthusiasts, the move by JP Morgan Chase, Citigroup, and Bank of America couldn’t come at a worse time. Basically, seasoned cryptocurrency traders are known for buying in the dip and selling when prices recover. But by the looks of it, purchasing Bitcoin at discounted prices is about to get harder.
Multiple reports indicate that Citigroup, Bank of Americana and JP Morgan Chase have all stopped sanctioning cryptocurrency purchases using their credit cards, although JP Morgan Chase had issued confirmation of its acceptance of Bitcoin credit card purchases as recently as January 25th, according to CNBC. In addition, Citigroup and Bank of America have also confirming ongoing review processes with regards to accepting Bitcoin purchases with credit cards. The move by the American banks is a clear show of their actual position with Bitcoin and cryptocurrency. Perhaps this is understandable though, given the cryptocurrency market has been plummeting, with the price of Bitcoin experiencing extreme volatility; losing half its value in a matter of weeks.
However, the move by the banks will see the entire cryptocurrency market lose the gains it had made over the past 12 months where widespread adoption of Bitcoin and cryptocurrencies had already kicked off on the back of the Bitcoin credit card purchasing trend. Although some crypto enthusiasts might read a lot into it, the move by the banks is entirely a self-preservation move as a JP Morgan Spokesman explained,
At the time we are not processing cryptocurrency purchases using credit cards, due to the volatility and risk involved. We will review the issue as the market evolves.
Citibank and Bank of America have also issued statements that show the decision to ban credit card purchases merely as a move to protect them from the extreme price volatility that currently exists in the market.
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What do you think about the move by the banks in the US to ban Bitcoin credit card purchases? Will they reverse this decision in the event of an upturn? Share your thoughts with us.