Yesterday was one of the darkest days for bitcoin investors, and cryptocurrency enthusiasts, all over the world.
Desperate calls for HODL were heard all across, as bitcoin legends asked all to calm down. HODL is a slang in the bitcoins and cryptocurrency world, which means to hold on to their investment, and not sell.
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But it seems that panic had already set it.
Bitcoins Bleed Red: Falls Below $10K
If we see the graph of bitcoin prices, then a steep fall can be seen, which wiped away billions of dollars of value.
The prices dropped below $10,000 and reached June-July levels.
Right now, at the time of writing, the prices are still in red, with valuation of $9877.
At its lowest point, the price had reached $7000, before bouncing back a little to reach $9000 level.
As per market watchers, the price dipped by 10%, within few minutes.
What Triggered The Mayhem?
The prices of bitcoins and other digital currencies started the downfall, after U.S. Securities and Exchange Commission (SEC) issued negative statements regarding the future of crypto trading.
In a statement, SEC said that all crypto-exchanges must register with SEC, in order to enable trading of digital coins.
This created panic, as registration with SEC will mean that regulation has been imposed, and this totally against the free market fundamentals which cryptocurrencies propagate.
Here is the full statement from SEC:
“If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.”
“The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as “exchanges,” which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange.”Are You A Shopping Lover?? Search Your Product Down.
The drastic drop in bitcoin value was also attributed to a news from Japan, where the Govt. is imposing severe penalties on cryptocurrency exchanges, after more than $500 million worth of digital coins were stolen last year.
But, Should Bitcoin Users Worry?
As per some experts, this statement from SEC basically covers alt-coins, or other digital coins which are not bitcoins.
Spencer Bogart, partner at Blockchain Capital said,
“Of all crypto assets, bitcoin seems least likely to be deemed a security — by a long shot.”
Security here implies to any investment tool, which SEC wants to regulate.
Meanwhile, Twitter has said that they will try to stop scams pertaining to cryptocurrencies, happening on their platform. An official said that they are aware of the ICO related “manipulation,” and is implementing measures to “prevent these types of accounts from engaging with others in a deceptive manner,”
Facebook has already blocked all forms of ads related to bitcoins or digital currencies.
We will keep you updated.