Not So Fast: Calls Of Strong Recovery Fall Short As Unwelcome News Continues
With Bitcoin and altcoins alike having experienced one of their worst weeks on the exchange since April 2013, the crypto community has anxiously been awaiting for prices to recover. Many traders had already declared the worst of it to be over, yet the market certainly isn’t recovering with any confidence.
Indeed, as at Monday morning (AEST), the market is again showing signs of stress, falling by over 11% ($51.6 billion USD) in the past ten hours. Across the previous 24 hour trading period, the price of Bitcoin (BTC) is down by 9.1%. At the time of writing, other notable virtual currencies that are enduring heavier losses are Ethereum (-10.6%), Ripple (-10.7%), Cardano (-15.0%), NEO (-13.4%), and Stellar (-15.0%) – courtesy of data from LiveCoinWatch.
As to what is fuelling the return of the market-wide selling, it appears some impact has come courtesy of fresh reports out of China that social media platforms and search engines have followed last week’s move from Facebook to ban cryptocurrency advertising.
The South China Morning Post today revealed how “searches for the Chinese terms for “bitcoin”, “cryptocurrency” and “ICO” returned news articles and links but not paid advertisements or sponsored posts” on Baidu and Weibo.
These ads are mostly made use of by initial coin offerings (ICOs). Given how primitive the regulation is surrounding ICOs, their existence continues to be marred with deceptive marketing techniques, fraudulence, and money laundering. So much so, that some countries like China and South Korea have prohibited ICO funding altogether.
Further impeding upon the short-lived market rally was news that permeated over the weekend revealing that another three major U.S. banks – Citigroup, JP Morgan Chase, and Bank of America – were prohibiting their credit card customers from purchasing cryptocurrency.
Bitcoin is currently priced at $8,438 (according to CoinMarketCap), which still represents a 7.7% price improvement from its weekly low of $7,830. That bottomed-out price had not been seen since November 21 last year, when the world’s most popular digital coin was just beginning its unprecedented growth phase that saw it flirt with the $20,000 mark just weeks later.
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