Black January: Why is Bitcoin so bad?

When it closed January, Bitcoin fell to $ 9,000 (approaching $ 8,000 in the first days of February). It has been a particularly difficult month for Bitcoin if it is considered that in mid-December the currency reached a maximum of $ 20,000.

The market has been successful after success in the days following its downward spiral from the above mentioned, the only problem is that some of these catalyzing factors have been paper tigers or, worse, false news.

In a speculative market like Bitcoin, which welcomed the massive influx of relatively disoriented speculators in the hype to $ 20,000, the bad news is especially bad and damaging to investor confidence.

South Korean confusion

In mid-January, there was a confusion that arose from South Korea, an important Bitcoin center in the east, such as the Ministry of Justice, which independently announced its plans to ban the cryptocurrency trade.

This sent panic through the markets, similar to when China announced that it banned the plans.

However, since then it has been cleared up by much higher authorities, and in fact, the outgoing sentiment from South Korea has been quite positive after this fear of the market. In fact, this move was even classified as insider trading since many fought against the supposed planned attack of FUD.

Regardless of the cleanliness and the clouds that are separated from the Asian nation, the damage was still done. The markets managed to regain their way in some way, but soon there was more damaging news of questionable integrity to send the speculators to flee

Old news

In the USA, fear, uncertainty and doubt showed their face when it was learned that there was a citation for Bitfinex and Tether. The first is an important exchange and the second a symbolic issuer.

This sent waves of panic through the community, as it proved again that the regulators that have been classified as enemy number one, stand up and stand up.

According to the report, the Commodity Futures Trading Commission sent subpoenas to these two companies, which, interestingly, were not even US-based companies, which also raised other questions about jurisdiction.

However, after the market suffered an 11 percent drop in this news, it was learned that these citations had already been issued, in early December, according to Nathaniel Popper, a New York Times reporter.

Again, the effect of the negative news was apparent, and its validity apparently unimportant as the markets doubled for a reason that was not even relevant or related.

Read it properly

The last episode of disinformation that had a voice in the markets left India, where a simple case of bad reading caused even more panic.

The main media, which are rushing to spread the news, apparently misinterpreted a government speech on regulation. The line in question, by finance minister Arun Jaitley, said:

"The government does not recognize the cryptocurrency as a legal tender or currency and will take all measures to eliminate the use of these cryptoactives in the financing of illegitimate activities or as part of the payment system."

However, this was exploited in: "Arun Jaitley just killed the Indian cryptocurrency party," according to an article by Quartz on the subject.

The line in equation states that regulators in India aim to eliminate the use of cryptocurrencies to finance illegal activities, but avoid mentioning the total legality of digital currencies. [Nbsp]

The world needs good news

There is no doubt about the power of persuasion and the extent to which bad news can affect a market as speculative as Bitcoin. And, to this end, as more bad news, false, real, old or late, accumulate on a trust already fragile, the damage is exaggerated.

Many expect a piece of positivity to correct all the errors that have leveled off in the digital currency, and for the market to react accordingly. However, what that news might be remains a mystery.

                    

                                             Source cointelegraph