Bitcoin Dropped for the First Time in Three Months

Bitcoin had a huge dropped at $6000 for the very first time in three months

It’s a first time for the very famous cryptocurrency, Bitcoin, to have a huge drop in three months. The virtual currency dived more than 20% to fall below $6000 this week. That’s their latest sharp loss following a series of setbacks.

According to Bloomberg News, Bitcoin dropped to $5,992 for the first time since mid-November. The latest and quite big downfall of the currency that saw a stratospheric 26-fold rise last year.

This downfall came just six weeks after hitting a record high of $19,511. It fueled by a flood of speculators looking to make a quick buck.

When this became popular, there’s tons news that governments including China, Russia and South Korea will take it down. These countries are the biggest markets for the sectors.

On Thursday, February 1, India said that “they will take all measures to eliminate” cryptocurrencies’ illegal usage. Because some people use it as part of a payment system and in funding illegal activities. Japanese authorities also raided a virtual currency exchange after it lost $530 million to hackers.

Central banks in Europe, Japan and the United States warned and reported some concerns about the unit. This week, some commercial lenders said they would stop allowing customers to buy bitcoin using their credit card.

“The dynamics behind the moves are regulatory clampdowns and investors losing confidence in crypto,” Stephen Innes said, head of trading for Asia Pacific at Oanda. The sell-off on Tuesday became worse by crushing losses on world stock markets.

Greg McKenna, chief market strategist at AxiTrader said, “The risk-off tone is hitting Bitcoin almost as hard as a global regulator and bank scrutiny”

“The latest dent to the Cryptospace has been banks saying they are shutting down the ability of clients to buy bitcoin with their cards. This could end up a full round trip back into the $1,850/$2966 region.”

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