Bitcoin seen to be revering Friday after four days of continuous losses. The downward trend for almost all cryptocurrencies are being brought up by continuous scrutiny which is coming from regulators all over the world. This has led to investor losses with governments now restricting their power systems.
A little change was witnessed today at $13,467 Hong Kong time which is a positive move after the decline. Bitcoin had moved down 23% during the week. This is seen as the deepest dig since 2015 based on our analysis. Currently, the move is ranging at about 20% showing that it has managed to shade off about 3%. The currency had moved up very fast in December just before the launching of futures by CME and CBOE. After that there was a major correction and since then Bitcoin has not recovered its price which was almost hitting $20,000.
This week has been very difficult for cryptocurrencies after the South Korean minister of Justice reiterated a proposal to ban all local cryptocurrency exchanges even though the minister’s statements were later downplayed by the spokesperson of the president.
Bitcoin mining might become very expensive after the Chinese government started cracking down the mining industry because of the power use concerns. It’s good to note that China controls more than two-thirds of all Bitcoin mining in the world and if the industry is challenged then mining might become very expensive.
The United States government is also set to start scrutinizing cryptocurrencies after reports suggested that it’s being used for fraudulent activities like money laundering. Actually the Securities and Exchange Commission Chairperson testified to the senate about the risks associated with Bitcoin and the other digital currencies. If the cryptocurrencies are found to support such illegal activities more regulations could come in to play which would be harmful to the cryptocurrency market.