Technology

Bitcoin Has Tumbled Below $8,000 for the First Time

Bitcoin has dropped below the $8,500 mark

A couple of days back, a powerful and enormous company made a declaration that alarmed lots of people. Though it’s may actually be better for the crypto-world in terms of long run, especially if you could understand the philosophy behindhand cryptocurrency in the first place.

But What Happened?

Bitcoin has dropped below the $8,500 mark, only 24 hours later surpassing $9,000. The whole crypto-market has dropped $25 billion, and it is suspected that the abrupt market decline was fueled by FUD (Fear, Uncertainty, and Doubt) nearby Binance.

In the meantime, CoinDesk’s BPI (Bitcoin Price Index) has represented an average of Bitcoin prices on the world’s leading exchange, is seen at $8,471 – down 2.77 as compared to the previous day’s close of 8,713 (according to UTC).

What Did Google Do?

Google declared that all the cryptocurrency adverts will be banned, including adverts that promote exchange, ICO’s (Initial Coin Offerings) and wallets the ban will begin in June. It may seem scared, but there’s a logical motivation behind it.

Furthermore, Facebook banned adverts related to cryptocurrency in January as they found out that numerous adverts were being used to potentially scam would be investors.

Tip: You’re highly advised to stay away from ICO’s (Initial Coin Offerings) which are being advised on social media for the very same reason.

Market Drops

A Japanese media named as “Nikkei” has reported that FSA (Japanese Financial Services Agency) warned Binance for serving local investors on its platform. Binance, on the other hand, the world’s biggest cryptocurrency-only exchange, served millions of users in different territories. Therefore, it’s of course that people in Japan could trade on the Binance trading platform as they trade usually on Upbit, Poloneix, Bittrex or any other cryptocurrency-only exchanges.

However, criminal charges will be filed against Binance in case of exchange “fails to terminate Japan operations” reported by Nikkei.  Oppositely, Changpeng Zhao (CEO) of Binance released a statement to encourage its users and investors that Nikkei’s reports are unreliable, whereas the Binance team has been communicating with the FSA for a while.

Changpeng Zhao’s Official Statement.

“Nikkei showed irresponsible journalism. We are in constructive dialogs with Japan FSA and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them”.

And

“No need to worry. Some negative news often turns out to be positive in the long term. Chinese have a proverb for this. New (often better) opportunities always emerge during times of change.”

Right after the Binance situation was made public, the market throw down $25 billion. But the Binance FUD contributed to the decline of the cryptocurrency market. It could have been coincidence, as it’s not truthful to claim that an exchange’s compliance with one region led the market to decline by around 10% overnight.

The Binance statement is considered as a positive moment to some extent, given that it’ll provide an opportunity for Binance to operate legitimately with less hassle, as being a controlled financial service provider within Japan, to serve the second largest cryptocurrency exchange market across Japan.