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Why is bitcoin slumped: people are increasingly worried about regulators
Source:      Date:2018-02-06
Tencent Francisco, according to foreign media reports, due to the emergence of a series of anti encryption currency into the mature financial market negative reports, bitcoin prices plunged from December last year, the highest peak of the road.

On Friday, J.P. Morgan, Bank of America and Citibank said they decided to ban their credit card users from buying encrypted money.

Last week, it was reported that the world's largest encrypt currency exchange, Bitfinex, had a suspicion of price manipulation. In December 6th, the Commodity Futures Trading Commission (CFTC) summoned Bitfinex and the digital money company Tether, Bloomberg reported. Three of the New York Times said last week that the report was confirmed by people familiar with the matter.

According to the CoinDesk bitcoin price index tracking Bitstamp, Coinbase, itBit and Bitfinex, on Monday morning, the price of bitcoin fell by more than 10% to 7334.93 dollars. This is the lowest price that the price of bitcoin has reached since mid November.

On Tuesday, Facebook also announced a ban on encrypting currency advertising.

At the same time, there is growing concern about the impact of regulatory agencies. The US Securities and Exchange Commission (SEC) has stepped up efforts to crack down on fraudulent activities related to encrypted currencies, while the South Korean authorities have banned anonymous trading accounts to limit speculation. In January of this year, Coincheck was hacked by more than 500 million U.S. dollars in digital currency. Japanese regulators began to conduct inspections on the local encrypted currency exchanges.

The head of SEC and CFTC will appear in the Senate Banking Committee on Tuesday to testify.

India finance minister Allen (Arun Jaitley) - Gute Li on Thursday in a speech pointed out that the government of India "not only does the encryption is currency as legal currency, and will take all measures to prevent people using this encryption currency to fund illegal activities or stop it becomes part of the payment system."

"The review of regulatory agencies may affect the price of encrypted currencies in the short term, but long-term professional investors need the government to better manage and standardize the encrypted money market." The investment management company VanEck digital asset strategy director - Barkis Nagel (Gabor Gabor Gurbacs) said, "the more that regulators understand the market, the possibility of normative products is higher."

Because individual investors are becoming increasingly interested in and more institutional investors, bitcoin prices soared 2000% in just 12 months, rose to more than $19 thousand. Its peak price appeared when the world's largest futures exchange, CME, introduced bitcoin futures. Its competitor, Cboe, has launched a bit of bitcoin futures a week earlier.

Many digital money lovers predict that the two major exchanges will introduce bitcoin futures, which will pave the way for the establishment of the bitcoin Trading Fund (ETF) in the future. The establishment of such a fund will probably attract more institutions to invest in encrypted currencies.

At the end of December last year, many companies competing for the establishment of bitcoin trading fund. However, in January this year, some of which the company withdrew his application. SEC points out that it is because they are worried about their liquidity and stability and the problem of protecting investors.

Schoen Ryan Schoen, a senior financial services policy analyst at Washington Analysis, a market research firm, said that six months ago, he thought that ETF based on bitcoin futures could be launched in the first quarter of 2018.

Now, "if you think about the regulators' worries about Bitfinex and its market manipulation, you may give up that idea." He said.

Last week, mobile payment company Square announced that it would allow most users to use their Cash payment applications to buy and sell bitcoins. The stock trading application Robinhood also launched the bitcoin and the Ethernet trading business in five states this month.

However, the major credit card companies prohibition of buying and selling encrypted money will make it more difficult for people to buy bitcoin.
 
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