On Crackdown Worries, Bitcoin Dipped Below $10K Tuesday, but Quickly Rebounded
Bitcoin gave investors a run for their money Tuesday, dragging down the top cryptos, and being the catalyst for a $100 billion market loss.
Bitcoin investors who were watching where the crypto was trading Tuesday around 10:30 p.m. UTC time may have experienced some heart palpitations.
That’s because the volatile crypto’s freefall had led to it breaking below $10,000 to $9969.01. It fell below that psychological benchmark just briefly before it started to tick higher and above $10,000. At the time of writing Tuesday, it was $11,179.
This marked a day in which the top cryptos shedded $100 billion in value. That breaks down as follows:
- Bitcoin; $183 billion
- Ethereum; $95 billion
- Ripple; $42 billion
- Bitcoin cash; $30 billion
Bitcoin’s decline translates to a 40% slide since the crypto hit an all-time high of $19,783 on Dec. 17, 2017. For Tuesday, Bitcoin was down 25%.
Why the fall?
Bitcoin’s slide has been attributed to the many debilitating actions that have been taken, and that may be taken, as government regulators are cracking down on the crypto.
We told you yesterday that one of the reasons there has been a loss of confidence in Bitcoin is based on investor fears that South Korea, one of the largest crypto markets, could ban cryptocurrency trading. Finance Minister Kim Dong-yeon said banning crypto trading was “a live option.” He revealed that the matter was being reviewed by the government.
Bloomberg reported that Kim Dong-yeon said there needed to be “serious” discussion among ministries. Traders, of course, are holding out hope that the shutdown of the exchanges won’t happen, the business news outlet noted.
Then there’s China. It banned ICOs and exchanges last year. Traders are waiting with bated breath about what its next move will be.
What’s being said?
As Bitcoin slid all day Tuesday, observers weighed in. One such observer was Steve Forbes. He repeated what he’s been saying for at least the past five years.
“Whatever [Bitcoin} is, it is not money when you have that kind of violent fluctuation.”
While he said he wasn’t enamored with Bitcoin, he, like so many others, saw great potential in Blockchain.
“The thing about Bitcoin and other cryptos is to look at Blockchain and what it could do in the years ahead to banking and credit cards,” Forbes said. “It could be like what the Web did to the print industry…turn it upside down.”
Wells Fargo analyst Chris Harvey spoke about how there could be some correlation between the equity markets and the crypto markets. He said:
“As it grows and becomes larger, so does the liability. So when we look at the markets, we look at everything- earnings, credit markets and the cryptocurrency markets and how it’s trading.”
Observers say that crypto traders and equity investors should watch closely how these markets correlate in the future.