Bitcoin drops below $8,000, what’s wrong with the price?

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August 1, 2018 by
Bitcoin drops below $8,000, what’s wrong with the price?

With the news of regulators across the globe had ditched proposal for a crypto exchange-traded fund (ETF) for the second time, the foremost cruptocurrency, Bitcoin, was trading below 1.2% or at $8,068. The ever-changing Bitcoin rally has affected prices of all other major altcoins with their prices seeing a volatile swing.

See also: Bitcoin developer who worked with Satoshi Nakamoto ready to launch a new crypto

On Tuesday, Bitcoin declined below $8,000, its fourth-fall in a week and lowest since July 23. As crypto analysts predict, Bitcoin is likely to witness a narrow price range of $7,673-$7,800 in market capitalization.

Why such decline? 

South Korea, considered as the most important market for the world’s largest cryptocurrency given the massive trading volume, is mooting a law to stop tax benefits for crypto exchanges. As it said, “Cryptocurrency transaction brokerage is not effective in generating added value.

Head of South Korea’s cryptocurrency response team South Services Commission, Hong Seong-ki opined for the urgency to form the law,

While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security, we’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention and investor protection. The bill should be passed as soon as possible.

There have reports of several cities and countries are exploring ways to regulate the crypto exchanges, which made it difficult for the miners of Bitcoin to think positive about the future of a Bitcoin ETF getting a green signal from the authorities.

See also: Vitalik Buterin adopts recent way in promoting cryptocurrency

A New York State Department of Public Service spokesperson said,

These companies are using extraordinary amounts of electricity – typically thousands of times more electricity than an average residential customer would use. The sheer amount of electricity being used is leading to higher costs for customers in small communities because of a limited supply of low-cost hydro power.

Sources said Martti ‘Sirius’ Malmi, the maiden programmer to work with Santoshi Nakamoto, creator of Bitocoin, is joining hands with other developers to introduce AXE—a new cryptocurrency.

For a trail of blockchain-based Ledger Connect, currency trading utility CLS, software giant IBM have teamed up with nine institutions that includes big names like Barclays and Citigroup.

With Ledger Connect, financial establishments will be able to access distributed ledger technology-based services in spheres of know-your-customer (KYC), sanction screening, derivative post trading process, collateral management and reconciliation and market data.

The US Securities and Exchange Commission (SEC) is still sitting on the approval of Bitcoin ETF.

Image via Shutterstock

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