Together with other major cryptocurrencies, such as Litecoin and Ethereum, Bitcoin is tumbling down below the $9,000 level on Wednesday.
Source: Frankel, Matthew, The Motley Fool, 2018
According to multiple sources, there are several negative news that came these last two days, and it’s no surprise how the market is going down.
First, Google just announced that they are banning all crypto-related and ICO-related ads. Right after major media and social one, like Facebook, which announced they are banning cryptos over a month ago, Google’s effect on the price of Bitcoin is undeniable. The ban from Google will begin in June, as reported by the company.
While the whole internet world is subdued with “crypto” stuff and news, having two of the largest media moguls banning all kinds of ads will definitely impact Bitcoin’s short-term price. While it is the “hodlers” who have the greatest power in balancing the real value of Bitcoin, crypto-related businesses and ICOs will not be able to “access” people through Google from June onwards.
Another major hit to Bitcoin and other cryptos is the upcoming G20 Summit in March, 2018. .S. Treasury Secretary Steven Mnuchin has indicated that he is planning to raise the subject of cryptocurrency regulation, since banks and financial institutions can no longer “pretend” that cryptocurrencies are not affecting their business, clients and plans for the future.
What is more, Mnuchin also commented on the fact that a working group is being formed right now, so as to explore the “young” market that is the cryptocurrency one right now.
Also, the newly issues warning from Allianz Global investors that the “people’s currency” is “worth nothing” seems to also be taking a piece of the value of Bitcoin. The explanation of that statement sounds familiar to what Warren Buffet said in the summer of 2017, i.e. that Bitcoin’s value is not supported by anything except the agreement that it is worth something. While stocks and bonds are supported and claimed on the actual earnings of companies and governments, Bitcoin’s value comes from the agreement it is worth something by the community of investors.
However, while these negative news may be affecting the market right now, the value of Bitcoin comes from the underlying technology it was built on – blockchain. It is also interesting to note that when Bitcoin falls, all other major cryptos fall with it. So, ahead of the G20 summit in Argentina and with financial institutions coming on Bitcoin, it is interesting to see how “hodlers” and Bitcoin traders will keep the price up in the near future.