The sharp decline in the prices of virtual currency such as Bitcoin is closely related to the increasingly stringent regulation pressures in the world.
With the virtual currency becoming more and more fierce, and becoming a concentrated area for various illegal financial activities. The regulation of Bitcoin and other virtual currencies becomes stricter in the future is a trend.
In recent days, virtual currencies such as Bitcoin have started to “fall”. According to Bitstamp’s data, on March 30, Bitcoin fell below the $7,000 mark to $6,929, and fell by 12% in 24 hours. At the end of last year, Bitcoin once rushed through $19,000.
Since the first quarter of 2018, the virtual currency market has been in recession. Bitcoin has fallen by more than 48%, setting the biggest drop in a single quarter since 2011. At the same time, other virtual currencies including Swiss coins, Ethereum and Litecoin also fell sharply.
The sharp decline in the prices of virtual currency such as Bitcoin is closely related to the increasingly stringent regulation pressures in the world. Since the beginning of this year, financial supervisory agencies of various countries have adopted a series of measures to prevent possible risks in the virtual currency market.
In early March, the U.S. Securities and Exchange Commission issued a subpoena to a number of ICO (first token issuing) teams that had violated the rules. Regulators in France, Japan, the United Kingdom, and other countries have also adopted series of rectification measures for virtual currency supervision.
While regulation pressure is increasing, major social media platforms have also begun to reject virtual currencies such as Bitcoin. Twitter launched an advertising ban on March 26 stating that in order to avoid potential fraudulent actions that will cause the public losing a lot of money, the platform will ban the emergence of virtual currency ICOs and sales advertisements on March 27. This is considered to be the main reason for the drop in the virtual currency price.
Prior to this, Facebook and Google have made similar decisions and began to ban the advertising of virtual currency. Reddit also announced that it will stop accepting Bitcoin payments. This caused Bitcoin to face selling pressure and virtual currency prices began to fall sharply.
Some experts believe that the previous boom in the virtual currency market and the stock price of companies with technology related to the blockchain have been heated up, mainly due to the lack of global systematic supervision. With the virtual currency becoming more and more fierce, and becoming a concentrated area for various illegal financial activities, the regulation of Bitcoin and other virtual currencies becomes stricter in the future is a trend.
This round of Bitcoin prices dropped drastically, which brought a lot of losses to many investors. This cooldown just gave them time to think calmly. Investors still need to take the initiative to strengthen their awareness of risk, remain rational at all times, and stay away from all types of illegal financial activities.
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