As we all know that the Cryptocurrencies is in the minds of people since the prices of bitcoin crossed 1000s of dollars for just 1 BTC. Bitcoin showed up its strength and reached all time high of 19783$ on Dec 17 2017. All of the world have seen a new industry growing up to a great extent. Everyone in this world was shocked after watching the power of digital currency bitcoin and potential of it.
Today I’m going to tell the main reasons for the price ups and downs this year. Below are the points :-
- boldThe MT. Gox selling BTC to return the money :-
Early in the 2011, one of the most renowned crypt exchange Mt. Gox has a security breach by a hacker that caused the nominal prices of btc to fraudulently dropped to one cent on MT. Gox by using a MT gox Auditors computers and it’s credentials, to transfer a large number of bitcoins illegally to himself. Another hack happened in 2014 and the company stated a loss of 850,000 bitcoins worth rupees of 450 millions. The 2nd hack caused the MT gox exchange to officially declare them as bankrupt and has stopped all deposits and withdrawals. Now the MT gox is returning the money of the people by selling thousands of bitcoins periodically. One of the part has been sold in Q1 of the 2018 that caused the prices tumble. Further 8200 btc has been moved from Mt gox wallet possible chances of sale in future. Even just a single event like this cause more price fall than anything else.
- boldThe price manipulation probe by US Justice Dept :-
The biggest price tumble is due to a criminal probe in the price manipulation of BTC by the US justice department. The US justice department suspects that traders are manipulating BTC prices, an illegal practice for the regular markets.
- boldThe SEC delayed ETF decision :-
ETF is an Exchange Traded Fund that is traded on stock market. ETF function as investments funds which allows access to an index or commodity providing same profit to investors as the major markets do. It has been reported that a Bitcoin-ETF is considered by the SEC (Us security and exchange commission), however the delay in decision regarding bitcoin exchange has caused a great impact on the BTC prices. The SEC has postponed the decision had adverse effect on bitcoin prices currently bitcoin trades around 6300-6800$.
So these were the main reasons that seriously affected the bitcoin prices to a great extent. There are bad news as always but positive too. There is an increase in the use of Cryptocurrency by the world. It can be said that the Cryptocurrencies is the modern innovation of 21st century.
The development of Cryptocurrencies and blockchain platform will pace up the development of the global world.
Let’s hope the bitcoin will reach the moon🌚 soon. Please write down your precious comments and feedback too.