Digital currency is always liable to suffer from the high price fluctuations and always investors are worried about the amount they trade. Bitcoin can reach the bottom of its value as experts think. This downfall of cryptocurrency may continue for many more days. This week the value of bitcoin gone 50 percent down and other cryptocurrencies like there, ripple and litecoin have gone with losses. After decreases in prices, there is a sudden increase before which gave a hope that market will rise and the price of the virtual money like bitcoin increases.
To invest we need to have information and we need to be aware and we need to know the problems and impact need to be faced by investing in cryptocurrency. For many of the traders who have been investing for years in the stocks, there have been always a market correction problems as like for each time there will be different variables which go on. So for that reasons investors who are investing always need to go for market research and risk management here the point is they need to understand the risk while they are investing and try not to panic with the information they have if they get losses. The top types of cryptocurrencies are bitcoin and serum which are not going to disappear but it can be recovered for the investor who waits for an increase in the price of cryptocurrency
Reasons for Bitcoin Crash
• Social Media Banning Crypto Oriented Ads:
At the beginning of the week, Twitter banned cryptocurrency oriented ads. Google and Facebook implemented few restrictions over this currency ads, Twitter added the new policy in ads related to cryptocurrency in which the advertisement of initial coin offerings and token sales will be prohibited all over the globe. With all these social media website mail chimps also joined in banning the cryptocurrency by saying it cannot allow any sales, transactions, marketing etc. to be done in cryptocurrency or virtual currency related to initial coin offerings.
• Japan Banning cryptocurrency :
In Japan, two virtual currency exchanges are banned this week by the financial services watchdog by observing that the Mr. Exchange and Tokyo gateway both don’t secure a license from Japan financial service agencies. It created a massive impact on the cryptocurrency due to which prices are reduced.
• Interest in cryptocurrency:
With the continuous decrease in the bitcoin prices, people are losing interest over bitcoin and any other cryptocurrencies. But the analyst says that in interest in cryptocurrencies can rise again in no time.
• The other reason can be the new rule in Europe which is about the investors can take the fair amount to trade virtual money or cryptocurrency.
• The USSecurities and Exchange Commission is trying to take control over the cryptocurrency that includes bitcoin and all other currencies also by saying that traders should buy and sell on enrolled trades only.
Government is been observing in the form of regulations, taxation for banning because it affects the government taxing process.