Bitcoin fell hard to lose nearly 10% to a six-month low of $6,600, deepening losses from last week after the weekend amid growing concerns about China's regulatory crackdown on cryptocurrency trading.
The cryptocurrency fell by as much as 9.8% at the close of trading on Friday, and was trading just above the $6,700 level, this being the first time Bitcoin has traded below the psychological $7,000 level.
Many believe that the main reason behind this sharp fall of Bitcoin, the rise in fears that China will continue to tighten its regulatory procedures for cryptocurrency transactions, as the People’s Bank of China asked cryptocurrency trading companies to abide by the measures entrusted to them, and warned investors about digital currencies, and earlier regulators issued In Shanghai, notices are calling for exchanges involved in crypto trading to correct improper conditions.
And some major media reported that the Chinese government supports blockchain technology and not digital currencies, as some think.
Another possible explanation for the drop is weak trading volumes IQ Option Due to the tendency of many investors towards investing in traditional assets, especially as global stock markets are achieving record highs, in addition to the decline in mining companies as a result of the drop in prices, which caused more selling.
Bitcoin plunges at the end of October
This was not the first time that bitcoin had fallen to levels of $ 7000, at the end of last October, the bitcoin currency fell to about $ 7,400, when Facebook CEO Mark Zuckerberg testified before the US Congress about the Libra currency, and then the reaction was Congress said it was a bit concerned about the possibility of Libra opening the door to money launderers, but that wasn't a major reason for the pullback but rather the disappointing results of the launch of Bakkt futures contracts, with less than 75 contracts trading in the first week.
Despite this, Bitcoin managed to recover after positive comments from Chinese President Xi Jinping towards blockchain technology, he commented that blockchain can revitalize the Chinese economy and that he has plans to push blockchain innovation into the country’s borders in the coming months.
Bitcoin rallied to the $8000 range after these comments, but the coin later rallied after Bakkt exchange continued to attract more investors and showed more promise and the platform saw millions of Bitcoin futures trades.
Unfortunately, these gains are clearly short-lived, Bitcoin has lost all the value it has since added to its price and even fallen below it, and there is nothing on the horizon to show that it may regain that value again.
Expectations not to rise soon
After falling below $8000 for the second time in two months, bitcoin appears to have lost a lot of stamina, and with only five weeks left to the end of the year, it doesn't seem clear that this number will double before entering 2020.
2017 has been a great year for Bitcoin, 2018 has been bleak, 2019 is apparently mediocre, and the question here is will 2020 bring promises to the crypto market?
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