US Crackdown, Tokyo Whale blamed for Bitcoin’s Slide Back to $8,000-level

Mar 09, 2018 at 16:42

US Crackdown, Tokyo Whale blamed for Bitcoin’s Slide Back to $8,000-level

Bitcoin (BTC), the world’s largest digital currency, dropped by nearly $3,000 since its Monday high following the US regulator’s crackdown on unregistered cryptocurrency exchanges and the Tokyo whale’s selling spree.

Bitcoin slipped back to the $8,000-level during Friday’s session, a significant drop from its Monday high of $11,649.87.

The leading cryptocurrency fell as low as $8,370.80 based on CoinDesk’s bitcoin price index.

Two things are being blamed for Bitcoin’s drop.

The first is the crackdown of the US Security Exchange Commission on unregistered cryptocurrency exchanges.

“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 said in a statement on Wednesday.

The US state regulator said federal securities law aims to protect investors and prevent against fraudulent and manipulative trading practices.

The announcement re-ignited fears of stricter and tighter cryptocurrency regulation,

Another news that sparked market sell-off is bitcoin sales by the trustees of funds from collapsed Japanese crypto exchange Mt Gox through Bitcoin’s Tokyo whale.

Nobuaki Kobayashi, the Tokyo attorney and bankruptcy trustee for Mt. Gox’s funds, on Wednesday sold $400 million of Bitcoin and Bitcoin Cash since late September, according to a report by Bloomberg.

He is still liquidating around $1.9 billion worth of tokens on behalf of Mt. Gox creditors.

Mt. Gox was once the biggest Bitcoin exchange globally but it filed for bankruptcy protection in 2014 after losing 850,000 Bitcoins—worth about $500 million at the time—from hackers.