Bitcoin drops to $7k, what happened?

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As if recent sentiments on the crypto markets weren’t depressing enough, news and rumors of regulation from different parts of the globe are suggesting tough times ahead for cryptocurrencies. Bitcoin, in particular, is suffering continuous blows with recovery nowhere in sight. But, what caused bitcoin to drop and how much damage has been done?

FAILED BULL BREAKOUT

Despite predictions of bitcoin rallying after the Blockchain Week in New York, the failed bullish breakout has the cryptocurrency in deep waters. The decline in prices began when bitcoin failed to sustain a comeback two weeks ago. Bulls were only able to raise the price point up to USD$8,644 and since then, the market has been going downward to USD$8,240 and is currently at the USD$7,365 level.

There are a number of reasons as to why the bitcoin and cryptocurrency market is going through such intense bearish trends. Analysts say it may have something to do with the Chinese ICO markets being highly active with its strict regulatory actions. China has been recently keeping an eye on shady ICOs and excessive speculation, fake profit schemes and crypto scams.

WHAT’S AFFECTING GLOBAL BITCOIN PRICES?

Some of the major reasons that might have caused the current bitcoin market downtrend are as follows:

  • Mt Gox initial sell-off which caused bitcoin to lose USD$9,000 footing
  • Recent UpBit scandals in South Korea
  • Bitfinex taxation policy which gained a lot of criticism from global crypto investors

BITCOIN MARKET STATUS

 Even with the current slump in the crypto markets, bitcoin continues to undeniably hold the biggest share in the cryptocurrency world. Its price may have dropped to the $7,000 mark and it may take a long time for it to recover, but analysts believe it’s still a good buy despite that. It remains uncertain, however, whether bitcoin will manage to recover and reach the resistance level.

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