By
Steve Muchoki
April 23rd, 2024
A significant Bitcoin drop by 13.6% has occured today after its historical maximum $4975 on September 2.
A significant drop of the most world known cryptocurrency Bitcoin has occured today. Total Bitcoin fall since its historical maximum $4975 on September 2 was 13.6%.
On Saturday, no one expected Bitcoin drop in nearest days. All experts provided positive forecast. The stock analyst Ronnie Moas even supposed that Bitcoin would reach $7,500 next year. Moreover, he suggested that its price could lead to $50,000 by 2027.
At press time, the price is nearly $4300 and Bitcoin price has already lost 4 % only today.
“This type of news is ‘universally’ negative sentiment, within the crypto space, so we are not surprised to see a dip on all assets today,” said Fran Strajnar, co-founder and CEO of data and research company Brave New Coin. “We do not see this to be a lasting issue.”
Unfortunately, Bitcoin drop reflected on the price of other cryptocurrencies too. For example, ethereum fell by 13.9 percent, litecoin dropped by 13.7 percent, and monero fell by 11.3 percent.
Current drop happened in the last 24 hours was not the biggest during whole period of Bitcoin trading. Bitcoin price fell by 21% after the U.S. Securities and Exchange Commission (SEC) rejected a proposed Bitcoin exchange-traded fund in March 2017. However, some analysts suppose that if Bitcoin price falls below $4,300, it can instigate a long-term decline.
The main reason of today Bitcoin drop is prohibition of People’s Bank of China (PBoC) on initial coin offerings (ICOs). It declared them illegal, and obliged any individuals or organizations that had completed ICO fundraising to return the funds. The Chinese committee suspects that some ICOs are financial pyramid schemes. That’s why committee has prepared a list of 60 exchanges which operation will be inspected in nearest time.
“ICOs are vulnerable to money laundering and terrorist financing risks due to the anonymous nature of the transactions, and the ease with which large sums of monies may be raised in a short period of time,” MAS, Singapore’s central bank, announced.
The strict measures of Chinese government is not the first attempt to restrict cryptocurrency development. In January and February of this year, the central bank warned several digital currency exchanges they would banned its operation if they violated anti-money laundering rules.
Nevertheless, some analysts believe that China will allow ICOs process, but only on safety and approved platforms. Moreover, they hope on further Bitcoin growth. Brad Chun, chief investment officer of Shuttle Fund Advisor, said: “These pull backs provide a buying opportunity for long term buyers.”