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Bitcoin Goes Back Below $8,000

bitcoin

If there is anything that the entire crypto market is known for, it is its unpredictable price movements. Price swings could easily be going up or down depending on what investor think. And if you will look at the month of April, it seemed that the entire crypto market was on its way towards recovery. Unfortunately, it is only a short-lived run.

If April was a good month for cryptocurrencies, it seems that the market is bearish yet again. After  Consensus 2018 that didn’t produce the bullish trend that some experts were expecting, Bitcoin today fell roughly around 9% dropping. And now, it is back below $8,000.

Aside from Bitcoin, other cryptocurrencies are also bearish. This is quite far from what Fundstrat predicted that would rally as much as 69% up after the so-called blockchain week. In fact, it was the opposite. Bitcoin fell by around 13% already since Consensus kicked off. In fact, Tom Lee is already owning up to the wrong prediction that he announced.

Regulatory Concerns

One of the reasons for this drop is due to the stricter implementation of rules and regulations both in the US and Canada. Regulators announced that they are going to have a widespread crackdown on cryptocurrencies as well as ICOs. Led by the North American Securities Administrators Association, this move will involve around 70 investigators coming from 40 state and provincial watchdogs.

If you will ask Brian Kelly who is the founder and CEO of BKCM which is an investment firm that is focused on cryptocurrencies, he mentioned that “This cleaned out a lot of bad projects”. He also added that “That has people a little concerned, and is a short-term hit to the sentiment”.

However, if you will look at the long-term result of this move, it could actually result in something fruitful for the entire crypto market. This could even get institutional investors to finally participate in the market.

Kelly said that “The projects that they shut down appear to be junk, they had a real reason to shut them down”.

There are a good number of ICOs today in the market. However, it is true that there’s a great number of fraud cases among ICOs. In fact, 1 in every 5 ICO is said to be a scam. And in reality, this is giving a bad name to the entire community.

China Led the Crackdown

In September 2017, China was among the first to ever implement a crackdown on crypto activity. On a new report that has been issued by China’s Ministry of Industry and Information Technology, it reiterated what the government is concerned about. It mentioned about “certain risks that cannot be ignored” in regards to ICOs, pyramid schemes, and fraud. The study was able to detect 421 fake cryptocurrencies in China alone.

Should you take the opportunity to buy while it is low? Considering the positive changes in the crypto market that this crackdown can bring, are we expecting institutional investors to enter the picture soon once bad projects have been taken out?

Mark Ayesa

Mark manages our editorial team, social handles and is always on the lookout for great writing talent to contribute to our site. On a day-to-day basis he ensures the content on CryptoCurrency365.com is of the highest quality and also carries out extensive research on any current hot topics of the crypocurrency world for our writers.

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