Bitcoin passes another important milestone – unfortunately not in the direction the crypto sphere wants it to go. On January 31 the dominant cryptocurrency dropped below $10,000. The further the lower – at 16.54 UTC on February 1 the price was just $9,071, according to CoinMarketCap.
While Bitcoin continues its precipitous fall the world continues discussing the reasons for the protracted problems of the currency. People want to find the algorithm of Bitcoin’s changes in price, they want to undercover the logic of this process. That is why many analysts link the decline in price with the global events that deal with cryptocurrencies, mostly with the political issues.
There have been a lot of accusations on China and South Korea during the last days. These countries were expected to share the same view on the cryptocurrencies, but Korea turned out to be more open for Bitcoin, even though several restrictions have been applied.
Now every statement of officials is debated hotly. For example, today’s significant slide in price has already been treated by several news portals as a result of India’s ban on cryptocurrencies. The Union Finance Minister of the country Arun Jaitley addressed the issue of cryptocurrencies in his annual budget speech. He did not say a word on banning the cryptocurrency, just underlined its illegal status in the country. But the Bitcoin fall frenzy turned his words into a sure sign of massive future restrictions.
The reaction of IT sphere is also intriguing. Facebook gained lots of attention this week with its recent post on “Prohibited Financial Products and Services”. This weird definition of ICOs and cryptocurrencies was used in the ban of this kind of ads on Facebook. But Mark Zuckerberg was not the only IT star discussed in the crypto sphere recently. Steve Wozniak decided that this rush is the care he did not want for his family and sold all his Bitcoin.
The IT specialist who created one of the leading companies in the world became too worried about the changes in Bitcoin price, let alone average investors. However, some people treat the whole situation as a “bull market” and use the moment to buy cheap, hold and make profit later. Oliver von Landsberg-Sadie, founder of cryptocurrency exchange BitcoinBro, made a good point saying “I think we’re seeing growing pains”. He said that lots of decisions like South Korea’s anonymity ban are positive – but they hit the market at first.
There are lots of different opinions on the future of Bitcoin. But numbers do not lie. From the beginning of the year Bitcoin has not managed to go any higher than $17,712. The $10,000 level was broken twice: during the fall on January 17 and on January 31. Nevertheless, sometimes it pays to take a look back. One year ago the price was about $1,000. It is one zero difference in just a year.