Investors continue to show declining confidence in Bitcoin as the cryptocurrency sets new record lows for the year. On Sunday, the leading alternative currency slipped below the $6,000 mark for the first time since February. The move ignited new fears that bears will remain dominant well into the second half of the year.
Upon the latest discouraging news, analysts touted some familiar explanations for Bitcoin’s troubles:
• A global move toward government regulation of the industry.
• Accusations of market maculation.
• Sagging investor confidence.
Last December, Bitcoin was valued at almost $20,000 and now has fallen approximately 70 percent from that record high. As investors continue licking their wounds, the financial world has learned that evidence exists that suggests that Bitcoin’s high last year was the result of more than just a bubble.
Regulators in several countries, including South Korea and the USA have launched investigations into market manipulation by several major cryptocurrency exchanges. Interestingly enough, the demise of Bitcoin may have fueled the rise of Tether, fueling suspicions that the issuers of that token have behaved inappropriately.
Meanwhile, Japan on Friday announced new limitations on crypto exchanges, giving investors even more food for thought.
Falling prices have caused frustration in the investor community, causing factions to arise that have charged one another with a variety of unethical behavior. Add to the mix the rash of scams and questions business practices surrounding the recent tidal wave of initial coin offerings (ICOs) and investors have reasons to worry.
Although Bitcoin’s blockchain network has been proven over time, it has not been immune from the effects of other currencies. In other words, Bitcoin and peers such as Ethereal and Litecoin have risen and fallen together, with little differentiation other than face value.
Of course, despite the major tumble of cryptos throughout 2018, investors who bought into Bitcoin just 12 months ago still hold onto more than 100% ROI. Of course, for people who bought into the currency during its meteoric rise have little hope to recoup their investments in the short run.