Bitcoin Drags Through Worst Month Since January 2015
Bitcoin has had the worst month in three years, losing approximately 30% of its value in January 2018.
Bitcoin exited January about $3,800 below the price recorded on the first day of 2018, which represents a 30% drop and makes it the worst month for the cryptocurrency since January 2015 in percentage terms.
On Wednesday, the BTC quotation slipped below $10,000 for the first time since January 17. The monthly peak was recorded on January 6 at $17,578, according to data from Coinmarketcap. Thus, Bitcoin fell from its monthly high by about 42%.
This is a long and one of the sharpest bearish moves in BTC’s history. Last year, it impressed investors with an annual gain of about 1,400%, triggering a Bitcoin mania. The price surge turned many investors into millionaires, drew startups into the crypto game, pushed GPU prices up, scared governments and regulators, and made Bitcoin one of the most popular search terms online.
However, Bitcoin has had a bad start to 2018. Despite its short-term volatility, BTC closed a month down 30% only three times in the past five years, the last time being three years ago.
Bitcoin and the whole crypto market entered a bearish trend on news and rumors that South Korea might ban Bitcoin trading the same way as China did in September 2017. South Korea’s finance minister stated on Wednesday that the government had no plans to ban cryptocurrency trading.
Nevertheless, the country has come up with several new rules related to Bitcoin trading. The Financial Services Commission (FSC) revealed this week new guidelines for a real-name transaction system.
The crypto world was also shaken by the news that Japanese crypto exchange Coincheck was hacked and lost about $530 million worth of cryptocurrencies.
Kim Sang-woo, a young Korean crypto investor, told the Wall Street Journal that all these events were frightening for him. He invested in nine cryptocurrencies about a year ago, multiplying the investment by about ten times. Now Sang-woo has cut his exposure to cryptocoins and focuses on local stocks.
“Valuations were way too high,” he noted. “I still see positive catalysts and I’m sure all the regulation is just a way of eventually building up a bigger market. But it’s tough right now.”