Bitcoin Plunges 14.5% in 24 Hours, Dropping Below $9K

The combined factors of regulation, sustained pessimism and hacking rumors have pushed the cryptocurrency market into a slump.
Jessica Miley

Bitcoin has lost around 28% of its value in the last week after posting losses for four consecutive days. Bitcoin currently trades at a price of around $8.925.

Bitcoin isn’t alone in its losses though. Other cryptocurrencies are also suffering.


Ether has dropped by 10.11 percent in the last 24 hours and Bitcoin Cash, Stellar and Cardano are also down about 10 percent each.

Looking at Bitcoin’s history experts argue the drop could continue under current bearish conditions to as little as $6000.

The downward spiral of bitcoin is being blamed on investors’ trust in the data being released about the cryptocurrency. The London Block Exchange wrote in its daily report on Friday that they see investors taking a pessimistic view of the crypto market because the changes are so sudden that they don’t have time for thorough analysis.

Cryptocurrency regulation threats spook investors

This coupled with continued threats from governments about heavy regulation has caused a dark cloud to gather over the market.

"It’s the usual — fears on regulation in the US after ICO subpoenas and exchanges coming under fire, as well as the Binance issues. These are purely behavioural markets and there are huge switches between strong bullish sentiment and fear and panic”, Charles Hayter, the CEO of CryptoCompare, told Business Insider.

Regulation threats have been hovering over cryptocurrencies since their major spike last year. The latest rules to come into play include Japanese regulators banning two currency exchanges and the US Securities and Exchange Commission demanding that crypto exchanges must be registered in order to keep operating.

Binance hack still unclear

Another startling news for the industry is the persistent rumors that the Hong Kong stock exchange, Binance, suffered a major hack earlier this week.

The CEO of the company has denied the claims, saying the pause in trading was only for maintenance, but in the already volatile market there is little trust of public statements. City Index Odeluga said: "The latest drop in confidence coincides with murky information around the Binance exchange, which to be fair, said it had reversed some irregular trades, with no losses to investors.”

Mt. Gox blamed for price crash

But that’s not all the bad news. News that the trustees of bankrupt exchange Mt. Gox have liquidated bitcoin holdings worth more than $400 million shook investors.

Some bitcoin observers went as far to say that the liquidation helped fuel the price crash experienced by bitcoin at the start of the year. It is believed that the Mt. Gox trustee Nobuaki Kobayashi may have a further $1.7 billion worth of bitcoins under his control.

Bitcoin price expected to fall further

Most market observers agree the price will drop again before it rises. Regulation rumours will continue to persist so these need to become an accepted part of the cryptocurrency ecosystem for the market to function with more stability.