The Bitcoin price has reduced to annual minimum. What’s going on?
The cost of the major cryptocurrency reduced $5 835. Analysts are sure that several factors influenced this.
On Friday, June 29, the average market price of bitcoin fell to the level of minimum of 2018 – it was $5,835. The value of the crypto currency fell almost by 50% in the second quarter and by 75% in comparison with the historical record of $20,000 set in December last year.
According to experts of one of the first crypto-currency media – NewsBTC – several factors determined the movement of the coin’s exchange rate in the last six months. Specialists reminded about Nobuaki Kobayashi, the trustee of the bankrupt Mt.Gox exchange, who sold about 36,000 Bitcoins and 34,000 Bitcoin Cash. from September 2017 to February 2018.
Analysts believe that his event could have impact on decline of the cost of the first cryptocurrecy to $6,000 in the beginning of the year. As for the manager of the trading platform, he said that he had been selling coins on the recommendations of experts, and this had no impact on the Bitcoin rate.
Several major trading exchanges were hacked in 2018, starting with Japanese Concheck – hackers stole NEM tokens for more than $534 million. Total capitalization of the market dropped rapidly after this event.
It made financial regulators from all over the world to toughen requirements to operation of crypto-currency platforms. Regardless to this fact the criminals robbed at least four large exchanges, including the South Korean Bithumb – $31 million were stolen last week.
The last event didn’t have significant impact on the cost of the coins as the platform guaranteed compensation of users’ losses. The Litecoin founder Charlie Lee explained this saying that the gold price doesn’t depend on bank robberies.
Decrease of Bitcoin price in the beginning of the year was connected with the fact that investors started selling digital assets to pay taxes, said Fundstrat analyst Tom Lee. The expert assumed that the price of coins will begin to recover after April, 15 – the last day to pay taxes in the US. Then he noted that the decline in the Bitcoin rate could be affected by the closing of futures contracts on the Chicago CBOE exchange.
The listed factors and many other ones, including tightening market regulations by governments of large countries, had negative impact on cost of digital money. Regardless to the drops, the Bitcoin price always increased again. This proves that even the first cryptocurrency is a bubble, it’s really hard to pop it – that’s what the NewsBTC experts concluded.