Market Panics as Bitcoin Falls Below $6200 for the First Time in 3 Months

Since November last year, Bitcoin fell below $6,200 for the first time and at the time of writing, is valued at $6,111.

Bitcoin – the first and the most popular cryptocurrency – marked history as it showed a stellar increase in its value in a relatively short span of time, getting to $20,000 apiece around 3 months ago. This led to a cryptocurrency boom during December and January, with almost all of the top 10 currencies seeing a massive increase in their value.

However, the massive cryptocurrency crash has left the entire world astounded (investors dreaded!) as many believe that this technology is a doorway to the future’s financial world.

Owing to the recent market capitalization free fall, Bitcoin’s value has fallen more than 20 percent in the past week and is predicted to go as low as another 50 percent.

Governments To Blame

Several important countries, including South Korea and Russia, have announced that they will introduce cryptocurrency laws to control and regulate its trade to prevent unlawful exchanges.

The Indian government has told the media that they will eliminate making payments using cryptocurrencies with full force and on the other hand, Japanese authorities have been raiding virtual currency exchanges.


FIA Recommends Govt to Declare Bitcoins Illegal in Pakistan

Moreover, market experts are saying that the biggest hit to the crypto market is banks, which are disabling the ability to buy Bitcoin using the credit/debit cards issued by them. An AxiTrader market strategist 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 string of events has lead the marketers to believe that Bitcoin could end up in the $2,000-$3,000 frame this year.

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