Bitcoin Drops Below $10000 In Hours As Volatile Cycle Continues


Recently cryptocurrencies face huge decline and bitcoin has gone down below $10000. Not only the bitcoin but are other top 10 cryptocurrencies also gone down by 3 to 13 percent in just one day. An SEC statement revealed this. As per the report, right now there are around 1,545 cryptocurrencies, and all are being used in 9.178 markets. Well, the SEC is now concerned about fraud and investors being taken advantage of this situation.

Bitcoin has gone down 7.5 percent to $9,480 as it faced two-day loses which attaining 13 percent. The market also affected cryptocurrencies like Ethereum and Ripple. As per the data are given by the Coinmarketcap. Com informed that Bitcoin had lost around $400 in three hours to hit $9658, but during press time it started recovered slightly to trade around $9900.

Image source: Coinmarketcap

It is expected that the reason behind this was a recent statement issued by the Securities and Exchange Commission if there are any digital assets involved in the exchange that will be treated as securities and that exchange company should be registered with the SEC. It is also expected that Bitcoin wallets now may need to follow the securities laws.

The new statement given by the SEC is related to the pattern of exchange, not the cryptocurrencies. It also informed it requires a license while selling securities and excessive blustering in this kind of trade and explosive markets can indicate about scalping, pump and dump and other frauds.

Another reason behind the fall was the rules and regulation issued by various countries and different regulatory agencies. The behavior of the cryptocurrency has become a pattern for BTC/USD since few months and before going down to $10,000 is increased to $12,000 and continues with this pattern.

Looking at the current behavior, several analysts have warned that it will be a very critical event to closing more than $12,400 but more difficult to achieve that.  An analyst named Tone Vays also advanced to stay carefully when Bitcoin closed above its 50-day moving average price for the first time. The situation was previously seen in January.

It is now also expected that Bitcoin will fall further in future, the first chart given by the agency informed about the price of the Bitcoin for the past three months. The chart shows that in December the value of Bitcoin was around $20,0090, but in February the price went down to $6,000. Then it again started to increase to $11,200 and $11,400 in just a few months but has slid to under $10,000 this week and has taken another drop after few days.

Image source:

Well, from the technical perspective, the recent highs could be treated as a double top. As per the second chart, in its 50, 100 and 200-day Bitcoin increased at an average rate. As the chart only updated after the closing of the U.S. Market, it is not showing the current decline of Bitcoin, i.e., $9,300. So, the situation is that if it is not rebounding in few days, it will lose its supporters. The chart also informed that price of Bitcoin is still moving downwards.

Some analysts stated that as t Mt. Gox Bitcoin sales continue to fall, that may have affected Bitcoin price. On the other side, Altcoin has managed to receive a mixed reaction. A report informed that Nobuaki Kobayashi, the trustee of crumpled Japanese exchange MT Gox had ditched bitcoin and bitcoin cash which valued around $400 million that had infuriated many investors.

As Kobayashi explained:

“As a result of the consultation with the court, I considered it necessary and reasonable to sell a certain amount of BTC and BCC at this point and secure a certain amount of money for distribution resources, and thus, I sold the amount of BTC and BCC above. I made efforts to sell BTC and BCC at as high a price as possible in light of the market price of BTC and BCC at the timing of sale.”

The SEC has missed out to inform another fact, i.e., around half Initial Coin Offerings of 2017 have failed.  The used data from and 902 ICOs to study the Initial Coin Offering of 2017. It found that 142 IOCs have failed in their funding and initial stage and slowly fading into obscurity lead to falling off more 276 IOCs. That shows that around 48 percent of 2016’s IOCs have already failed.

During that time those IOCs had managed to raise more than $104 million range from a couple of thousand dollars to a handful over $10 million. Now those valuable funds have gone. Apart from these, there are some semi-failed IOCs. There are 113 IOCs under the semi-failed category. The reason behind this may be their team may have stopped communicating on social media. Another reason can be the small community which can lead to achieving desired success.

As per the report, all those 113 IOCs had aroused around $129 million. But this amount will also evaporate. That makes the total loss due to the failure of IOCs is around $233 million. Well, now it is expected that those failed ICOS can help legalize Bitcoin and few other cryptocurrencies as many companies have now focused on that that has more staying power. But, their unpredictable pricing will make them slower for the undertaking.

As per the assets tracking report, some cryptocurrencies like Ethereum Classic and more remained stable. The cryptocurrency like Ethereum and Ripple are gone down less than BTC and on the other side cryptocurrencies like Dash, Cardano, Monero and more faced bigger losses. Coinbase has stated that it is not affected by this issue and it does not use ICO tokens or securities in exchange.

It follows all the rules and judicial regulations in which it works, and it is operating under a New York state BitLicense. This law is only applicable for virtual currency trading. The SEC is also stated that GDAX and Coinbase exchange are not required to register under the new law as they do now use those assets which considered as securities. So, the company is now running in safe, while the companies those are suing IOC tokens are now suffering from this situation.

Now, the US national regulators the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are monitoring ICOs that US consumers have. The state regulators have a taken strict step for vague ICO offerings and its associated companies. However, cryptocurrencies are not safe and can be hacked. Bitcoin has witnessed around 40 thefts till now which include a theft value of $1 million.



Please enter your comment!
Please enter your name here