Bitcoin Sliding on Market FUD
Volatility continues to heighten in the cryptocurrency market as evidenced by Bitcoin’s recent trajectory. The king of cryptos has traded at highs close to $11,000 and at lows of $8,500 over the past week. While on the one hand, positive news such as the Bitcoin Lightning Network being tested in Japan and the addition of Bitcoin sentiment indices by Thomson Reuters, may have served to lift the market; other market news such as the SEC’s call for regulation, the Mt.Gox Bitcoin sale, and China’s continued crackdown on cryptocurrencies, have kept the sentiment at a low on the other. The latest news adding to this market FUD (fear, uncertainty, and doubt) relating to Bitcoin comes from two powerhouses: the International Monetary Fund (IMF) and Google (GOOG).
On March 13th, the IMF Chief Christine Lagarde released a blog post titled “Addressing the Dark Side of the Crypto World” which expressed her thoughts on what comes next for crypto. While Lagarde does pay due recognition to the technology behind cryptocurrencies like Bitcoin, she also believes that their decentralization and anonymity makes them “a potentially major new vehicle for money laundering and the financing of terrorism.” As a solution, Lagarde suggested fighting fire with fire. Read the details here.
Also, in an update to its current Ads policy, Google (GOOG) has banned all kinds of cryptocurrency related advertisements on its website with effect from June 2018. This follows in the footsteps of Facebook (FB) which included binary options, Initial Coin Offerings and cryptocurrency under prohibited financial products and services in its new Ads policy.
Down 5% in a Day!
Not forgetting that the regulatory authorities in the US and China have been vigilant in sounding warning bells to crypto investors every now and then, adding to market FUD. Continuation of such negative news and market uncertainty with regards to Bitcoin and its legality could take the currency down to $8,000 or below. The crypto is already down by about 5% for the day, as indicated by Coindesk’s Bitcoin Price index (chart above).