How Far Can Bitcoin Drop Down?
Since last week, when the price of Bitcoin dropped below $ 10,000, currently it recovered and is trading nearby 11,600, according to CoinMarketCap. There is still a long way to reach the previous high of $ 20,000.
That was before a raft of news of regulatory crackdowns, among other concerns, shook the cryptocurrency markets.
Investors became a bit nervous after some important events, such as the reports of South Korean officials drafting laws to clamp down on cryptocurrency traders, the US Senate’s financial services panel preparing to probe cryptocurrencies and Warren Buffet, casting a grim outlook for Bitcoin and its competitors.
There’s also more bad news from Indian tax officials who prepare to claim their slice from crypto market.
Tax department officials in the subcontinent have sent out thousands of tax notices after data showed that cryptocurrency transactions worth more than US$3.5 billion had taken place in India in less than two years.
“We cannot turn a blind eye. It would have been disastrous to wait until the final verdict was out on its legality,” a tax official told Reuters.
India is not alone. The governments of France and Germany also are planning to regulate the cryptocurrency market.
It’s likely the value of many cryptocurrencies will continue to drop with the events of government crackdowns on Bitcoin and its rivals.