Bitcoin has put in a disappointing performance this year, a stark cry from the end of 2017, and it appears it is not over yet. The biggest and most popular cryptocurrency has dropped by a further 7%, taking it below $7,500, the lowest it has been since early February. This means, in 2018 alone, the token has seen a huge loss of 48%. The good news for Bitcoin is though that it is not alone, and other digital currencies have too suffered losses, some even bigger than Bitcoin’s.
Of course, one of the main reasons for this is the new regulatory pressure that is affecting all cryptocurrencies. On top of this, many of the major social media platforms, Facebook, Twitter and Google have announced that they will be distancing themselves from the market by banning all advertising relating to crypto, with the latest being Reddit, who have recently announced that they will no longer accept Bitcoin payments, despite backing the virtual currency for years.
Mt Gox, a defunct Japanese exchange has sold almost $400 million in Bitcoin and Bitcoin Cash in recent months in order to reimburse the exchange’s creditors, which has negatively affected the cryptocurrency, and added to its losses. They are also reportedly selling more of the cryptocurrency that they hold, and considering, in early March, they had more than $1 billion, this will be a huge hit for Bitcoin.
Naeem Aslam, who is the chief market analyst at TF Global Markets, explained the drop in value, saying;
“Bitcoin is under selling pressure again and chances of its recovery are looking slim…[It has] slid significantly, since the tech giants’ ban on ICOs.”
This first quarter has been nothing but disappointing for Bitcoin. When you consider that it increased by a huge 1,400 percent last year, this 48 percent quarterly decline is the biggest since 2011. Only time will tell if Bitcoin will recover or not.
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