Prices for Bitcoin Fell Another $300 After News Of Further Regulation
Bitcoin prices fell three hundred dollars on September 5th. The initial thought may be based on the result of uncertainty regarding Hurricane Irma but it was actually based on the recent announcement from China. Regulation and bans of cryptocurrency crowd funding options saw prices tumble during the early part of the week. From all time highs last week to now dropping to a price of $4,350, the regulatory tightening from one of the most heavily populated countries in the world has sent a shockwave across the industry.
Even though some analysts say that the price of bitcoin shouldn’t be directly correlated with the recent crackdown by China, investors have obviously taken an opposite opinion. The fact that many start-up companies are going by way of ICO means that funds raised by selling digital tokens in the market has greatly increased. Total investment dollars into ICO’s this year has hit $1.2 billion.
“The price action has certainly been led by this Chinese salvo – but healthy profits and moving traders to take gains off the table too until the panic calms,” Charles Hayter, chief executive and founder of digital currency comparison website CryptoCompare, told CNBC via email. “The Chinese market has been perhaps the most virulently exuberant in terms of its irrational excesses and across the world regulators are looking to gradually turn up the regulatory heat on this ICO phenomenon.”
Paris Hilton has sparked more attention on ICOs recently as she stated over the weekend that she would be participating in one that is run by LydianCoin Ltd. The coin is proclaimed as “the first AI big data marketing cloud for blockchain.”
Further murmurs from bodies like the SEC continue to support the idea that regulation is coming. The main question remains, “What will this do to cryptocurrency and blockchain as we know it?”