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Thursday, 28 December 2017

Ahead of New Year, Bitcoin Faces Meltdown

Bitcoin is facing a major downturn as the much vouched cryptocurrency's valuation is taking a hit in the holiday season.

On Friday, bitcoin slumped to the lowest point of $10,400 before stabilising a little in Tuesday's trading. This figure is far short of the dizzying heights it reached, as it came within striking distance of the $20,000 milestone.


The retrenchment isn't typical for cryptos, which often snap back after a few losing sessions. The last time bitcoin dropped for five successive weekdays was September and, before that, July.


The slump can be attributed to the red flags raised by a number of regulatory authorities as the euphoria reached its crescendo.

On Christmas day, news agency Reuters reported that Israel's markets regulator will propose regulation to ban companies based on bitcoin and other digital currencies from trading on the Tel Aviv Stock Exchange. "We feel that the prices of bitcoin behave like bubbles and we don't want investors to be subject to that volatility and uncertainty," Hauser said. "There is an importance to signal to the market where things are... Investors should know where we stand," Shmuel Hauser, the chairman of the Israel Securities Authority (ISA) said.




While bitcoin is facing a meltdown, some other cryptocurrencies like Ethereum and Cardano have registered gains.

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