Bitcoin Drops To Below $8,000 As Cryptocurrency Market Corrects Itself
Bitcoin has reached a new low after a violent sell-off saw billions of dollars wiped off the value of many cryptocurrencies. The currency dipped to below $8,000 for the third time in four days on Monday which many experts believe as the free market trying to correct the bubble that saw the value of many digital currencies skyrocket.
The price of Bitcoin traded as low as $7,178.65 on Monday and stayed below the $8,000 mark for the majority of the morning trade. This is the lowest price for the digital currency since Nov. 16, when it was still climbing to its peak.
It was not alone, however, as many other cryptocurrencies took a price plunge with over $60 billion shaved off their combined market cap in just 24 hours. The massive sell-off has been attributed to worrying news from Asia where new regulations are spooking investors to parting with their digital fortunes.
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Just last week, India's Finance Minister Arun Jaitley stated that the country wants to "eliminate" the use of digital currencies in the country, at least those that they deem "criminal." And just this Monday, China announced that it will be blocking access to foreign websites that offer cryptocurrency trading and initial coin offerings "to prevent financial risk."
US banks also announced that they will no longer credit card holders to use their services to buy cryptocurrencies. This was followed by the UK's Lloyd Banking Group who announced that they will curb the use of their services to buy cryptocurrencies.
Some experts interpret the massive price drop as the market trying to correct itself from the massive bubble that created many millionaires and billionaires, at least for a time. However, many are certain it still a long way before digital currencies can stabilize enough to become a viable mode of exchange.
Coupled with governments seeing the anonymous and stateless cryptocurrencies as a threat to their stability, investors will likely see only more stringent regulations on the horizon. And if there's anything that could send investors into a massive selling frenzy, it's government regulations.
