Bitcoin Big Crash, Why?
Bitcoin, the best known of hundreds of 'virtual' coins, slumped today to a six-week low below $11,000 as analysts blamed a rush by various jurisdictions to regulate the sector. The final weeks of last year were marked by bitcoin mania as the unit topped $20,000, but it lost some 20 per cent in today trading which saw most of its fellow cryptocurrencies similarly wilt.
"Bitcoin has dropped below $11,000, a level not seen since early December. The cryptocurrency has fallen nearly 40 percent since its all-time high," noted David Madden, market analyst with CMC Markets.
WHY??
I think real problem or reason is what you probably know...South Korea
The loss of confidence in Bitcoin is based on investor fears that South Korea, one of the largest crypto markets, could ban cryptocurrency trading. Finance Minister Kim Dong-yeon today told local radio station TBS that banning crypto trading was “a live option.” He revealed that the matter was being reviewed by the government.
It all started last week, when the minister said South Korea would ban cryptocurrencies, including Bitcoin. The news has triggered massive sell-offs, and the presidential office then tried to calm down fears by saying it was just a proposal from the justice minister and no final verdict had been reached.
All of the top 20 cryptocurrencies by market capitalization entered bearish territory on Tuesday morning, the negative sentiment supported by uncertainty whether South Korea would ban digital currencies or consider some drastic restrictions that would limit crypto trading within the country. Bitcoin right now is (-23.32%).
More than 212,700 have signed a petition calling for the government to refrain from regulating cryptocurrencies and taking away the "happy dream" of South Koreans.
The online petition is posted on the website of the South Korean presidential office.
A Google translation states that if more than 200,000 people support a petition within 30 days, officials will respond.
MY OPINION?
I think for a few days bitcoin like the other cryptocurrencies will be back to normal. This is someting what happened before, lets take a look on grafs of bitcoin last 4 years. As we can see at the begining of the year bitcoin always crash but after that always grow...