Yahoo Finance Bad News Grips Bitcoin and the Cryptomarkets
Bitcoin managed to move through to a Monday high $14,150.02 in what had been a positive first half of the day, before the slide returned, with Bitcoin ending the day down at $13,250, a 2.92% fall for the day.
While the day’s decline may not be significant in the world of cryptocurrencies, the bearish trend and the negative sentiment is perhaps of greater concern for Bitcoin investors.
While Bitcoin Futures have played their part in pinning back Bitcoin from any rallies this year, the latest pullback has less to do with the futures market and more to do with government and regulatory chatter.
Despite the South Korean government averting a cryptocurrency sell-off last week, there was more chatter on Monday, with calls for greater government oversight ultimately weighing on Bitcoin and the rest of the cryptomarkets.
Adding to the negative sentiment has been news coming out of China of the government being more interested in removing Bitcoin from the country altogether and not just the mining cartel.
A movement is afoot and it’s not a decentralized one that led to the exponential gains through 2017. Even France’s finance minister has jumped on the anti-crypto bandwagon calling for new regulations in the interest of clamping down on tax evasion and the funding of illegal activities.
While France may not be at the epicentre of cryptomania, a coordinated effort across the EU would certainly have an impact and if the EU can coordinate with the South Koreans and the U.S, then there really will be a problem for investors looking to retain their anonymity.
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At the time of writing, Bitcoin was down 7.95% to $12,525.03 and the negative news has taken the rest of the Bitcoin Clan with it, with Bitcoin Cash and Bitcoin Gold down 10.73% and 14.5% respectively.
Even Ethereum has been hit with the South Korean government’s talk, Ethereum down 9.37%, with the ICO market unable to prop up Ethereum in the midst of all the negative chatter.
It was only going to be a matter of time before governments and regulators stepped up the fight against money laundering and the funding of criminal activities, with 2017’s exponential gains raising multiple red flags from a regulatory perspective.
Bitcoin’s fall to mid-$12,000 levels has been a rapid one this morning, with the decline from $13,000 levels coming in just the last 30-minutes.
It’s certainly not looking bullish for the cryptomarkets and with talks of money laundering and theft adding to the negative sentiment, there are plenty of reasons for governments and regulators to begin taking a firm stance on exchanges and the anonymity offered.
Based on current trends, support levels are falling away and Bitcoin could be sitting at sub-$12,000 before the afternoon. The only real question the cryptomarkets will be asking is if this is the end.
To date, the cryptomarkets have found ways around government control and oversight, but the threat of a coordinated global effort is something that may be too much, even for the most evasive of exchanges.
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This article was originally posted on FX Empire
