Bitcoin is currently trading below the $7,000, which is the lowest level since last week. This price, which is 65% lower than its December highs could continue to deteriorate.
How did we get here? It all started early last quarter when South Korea announced that it would crack down on bitcoin exchanges. Then came the bankruptcies of key exchanges like YouBit, and the problems with Coindesk. Regulators from other countries too like China, Japan, and United States announced that they would place regulations in the industry.
Then came Facebook. In February, the company announced that it would ban all cryptocurrency related ads. Google and Twitter followed. Without these platforms, blockchain developers had no way of marketing their products because the three companies control more than 90% of all online marketing.
Financial services companies like Visa, MasterCard, and PayPal too entered the scene and made it difficult for people to buy and sell cryptocurrencies.
Finally, in the community, it became clear that bitcoin did not do what it had been envisioned to do. The whitepaper that gave us bitcoin promised to lower the costs of transactions, increase the speed, and increase anonymity. All these facts were debunked in the quarter when even a bitcoin conference stopped accepting payments in bitcoin.
As such, bitcoin’s bearish moves continue. As shown below, bitcoin is closing in on $5,844, which is the lowest level since February this year. A move below this point could see it continue to slide as longs exit their positions.
