Bitcoin price plummeted below the support level of $8000 for a third time today. The huge volatility in crypto markets wiped off more than $417 billion from the total market capitalization in the last month alone making this bitcoin price plunge one of the greatest yet.
Consequently, the broader selloff has pulled back the cryptocurrency prices at the lowest level in the last three months.
Bitcoin price plunged below $8,000 during the Friday trade, and although bounced back above $9,000 over the weekend, it has again dipped below $8,000 today. After those dramatic swings, it is currently trading in the range of $7,400.
How The Chinese Regulations Led the Bitcoin Price Plunge:
China, which has recently expressed strong concerns over the cryptocurrency trading, is now planning to impose a complete ban on domestic and international cryptocurrency trading platforms.
Based on the local media reports, the Central Bank of China is likely to block all platforms related to the issuance of initial coin offerings (ICOs) and cryptocurrency trading. Already, China has banned cryptocurrency trading in domestic markets. But now, the country has extended the concentrated efforts to foreign platforms too.
The Financial News reported:
“In the future, any related (platform) will be closed as soon as it is found. At the same time, further regulatory measures will be taken with the future development of the situation,”
Last week, comments from the Indian finance minister created the huge crash in prices. During the budget speech, he stated that “the country wants to eliminate the use of digital currencies in criminal activities” and this plunged the bitcoin price below $8,000 for the first time on Friday since November 24.
Why Is The Upside Limited?
Cryptocurrency mania seems to be ending over the last month. After South Korea, several major institutions have stressed for the strict regulatory actions against the cryptocurrencies. The largest U.S. banks such as Bank of America and J.P. Morgan Chase, have stopped their customers from buying cryptocurrencies using credit cards. Following that trend, the U.K. lender, Lloyds Banking Group, has also implemented the same policy. The signal is clear; there is less trust in cryptocurrency markets.
Featured Image: twitter