Go to ...

Economics Gazette

Economy and Business news

RSS Feed

November 17, 2019

Bitcoin sent its worst week since 2013 erasing 32% of its value

BitcoinThe Bitcoin is about to send its worst week since 2013 erasing 32% of its value and a market capitalization of 63.43 billion USD. Only within the day, the largest cryptocurrency dropped by 12.32% to 7,937.50 USD, reaching a 11-week low. In just 24 hours, 112.6 billion USD have been wiped out of the market capitalization of all cryptocurrenies.

The virtual currencies have seen significant declines in their prices over the past few days due to concerns and measures taken by regulators around the world. There have also been rumors that the cost of the Bitcoin has been artificially maintained at the popular Bitfinex trading platform.

Many people in the market are concerned that Bitfinex has artificially maintained the high cost of a Bitcoin by buying large quantities of the market through its own digital currency Tether.

There is not much news on the market manipulation until now, except that the Commodity Futures Trading Commission has sent summons to request a response to a number of Bitfinex and Tether issues. The two companies have the same CEO. In addition, it is claimed that one Tether is ensured by one dollar. It is unclear what issues the regulator has addressed to both companies.

Earlier this week, the Indian government said it did not consider cryptocurrencies as a legal tender and would take all measures to eliminate payments through them. The tax authorities in India have started investigations in December of various transactions made through illegal trade in Bitcoins. This happened a little after the South Asian central bank warned consumers about the potential risks of cryptocurrencies.

The digital money also faces serious resistance in two of its largest markets – China and Japan, where a number of measures have already been put in place to reduce trading opportunities for various speculation and fraud or to fund criminal activity.

Leave a Reply

Your email address will not be published. Required fields are marked *