The bitcoin currency witnessed widespread turmoil during last week’s trading, as the widespread selling dominated during the trading of the week, causing the bitcoin currency to fall below the $3,500 level, then rebound to rise at the end of the week and trade near the $4,500 level, this comes in light of the continued state of fear and panic that Investors are freaked out by the open selling that has gripped the financial markets and the growing fears of the Bitcoin bubble bursting.
Bitcoin has incurred significant losses over the course of November trading, as it lost about 37% of its value for the fourth month in a row and is the largest since last March, and since the beginning of this year, Bitcoin losses have reached more than 75%, and the total market value has also declined. For the month of November, the value of Bitcoin valued at $36 billion to reach $73 billion, falling below the $100 billion level for the first time since October 2017.
Some digital market analysts believe that if Bitcoin continues to fall below the $3,000 level, the situation of Bitcoin in particular will become very critical, as well as other cryptocurrencies in general.
So far, the main reason for this sudden collapse in digital currencies has not been revealed, but this matter came in conjunction with some events that are believed to be the reason, as it came with the process of the total split of the bitcoin cash, which may have led to a decline in demand rates for buying Digital currencies, and the US Securities and Exchange Commission imposed sanctions on two digital currency trading companies, accusing them of not registering their initial coin offerings as securities. Companies that may be subject to these penalties.
There were also renewed concerns in the markets about the US Department of Justice's investigation into the surge in digital currencies over the past year, which is likely due to manipulation by some global exchanges.
Last week, it was reported that Goldman Sachs is not close to providing crypto-related services and that it will take some time, contrary to what the bank said last year that it was considering setting up a cryptocurrency exchange.
The media reported that Nasdaq will launch futures contracts denominated in bitcoin during the first quarter of 2019, and futures contracts will provide a central market for investors where they can speculate on the future movements of contracts. The Chicago Mercantile Exchange preceded the Nasdaq in launching futures contracts denominated in bitcoin.
Among the positive news in the digital currency market, the media reported last Friday that Ohio will become the first state in the United States to accept paying taxes in digital currencies, and Ohio State Treasurer Josh Mandel said that this step aims to adopt a broader and more comprehensive idea of currencies. It also motivates the federal government to look at the experience and follow suit.