The Bull Run Ends: Finally bulls lost their momentum after a two-week rally – which doubled the Bitcoin (BTC) price from the lows seen on Feb 6. Bitcoin, Ripple (XRP), Ethereum (ETH) and the remaining top 20 currencies all posted significant losses today, and only Monero seems untouched by the crash.
Bitcoin price was close to hitting the $12,000 mark yesterday; but BTC price took a big U-turn today, dipping more than 8% to the level of $10,700.
Bangladesh and U.K. Ended the Bull Run
The crackdown on bitcoin traders in Bangladesh and pessimistic comments from the Bank of England weighed on cryptocurrency prices. The renewed regulatory concerns along with trader’s strategy to capitalize on the recent rally impacted virtual currency prices.
The Dhaka Tribune reported a more forceful crackdown on cryptocurrency traders, and the report suggested that local police are “on the hunt for bitcoin users.” The Bangladeshi government warned their citizens to avoid using bitcoin for any financial transactions.
Bangladesh Bank said, “Bitcoin is neither accepted nor considered legal tender anywhere in the world.”
Bangladesh is among the third world countries and has been seeing high levels of corruption and money laundering.
The country had previously barred their citizens from transferring money to abroad via illegal sources such as Hundi. The emergence of digital currencies and their anonymity feature opened the doors for money launders to make the big movement of money.
Bank of England (BoE) Chief Mark Carney added to bearish sentiments. He said, “Bitcoin has pretty much failed as a currency by standard benchmarks and is neither a store of value nor a useful way to buy items.”
Mark Carney comments look strong because of the significant price volatility. For instance, if you want to purchase goods through bitcoin, then how would you settle the price for those goods given the significant bitcoin price swings?
Cryptocurrencies Fell Across the Board
Ethereum and Ripple, the second and the third largest digital currency, plunged more than 9% in Wednesday trading. Bitcoin Cash (BCH) and Litecoin (LTC) were among the most prominent laggards; both fell more than 13% today. The selloff has wiped off $50 billion from total market capitalization of cryptocurrency markets.
Analysts have a mixed opinion on the future of cryptocurrencies. Some analysts are predicting a sharp growth, while others are forecasting a lousy ending. Governments and central banks are supporting the innovative blockchain technologies; they have several concerns over the illegal use of virtual currencies, and their lack of underlying value.
Featured Image: twitter