The cryptocurrency market has once again weakened. Bitcoin is currently reported at US$7337.7. Although the 24-hour trend has improved, it still dropped 13.43% on the 7th. Ethereum also fell more than 20% on the 7th, while the Swiss Wave fell about 13%.
Although the overall market is sluggish, there is no doubt that Bitcoin still occupies the largest market value of the cryptocurrency. Some analysts said that the recent bitcoin price plummeted, it is difficult for the bulls to really break before they stand above the $8500 mark. However, the current level of support for the cryptocurrency of this variety has not yet been determined. Last Sunday, Bitcoin once attempted to break through the 8500 key point that analysts mentioned, once pulling up to 8,644 US dollars, but then it plunged to 8,240 U.S. dollars, up to the current 7,300 U.S. dollars.
With the weakening of the cryptographic market, there is a worldwide regulation and scorn of cryptocurrencies. Earlier, the US regulator announced that it is investigating whether the virtual currency such as Bitcoin and Ethereum is subject to the application of securities regulatory rules. In addition, regulators also analyze whether creators of virtual currencies other than Bitcoin have a significant impact on currency prices. The focus of this investigation is on illegal actions that may have an impact on prices—such as fraud, placing large numbers of false orders to defraud other traders of buying or selling.
In addition, in the middle of this month, South Korea's largest cryptocurrency exchange, Upbit, was raided by the South Korean prosecution. After the announcement, Bitcoin prices also received an impact. In the past few months, South Korean regulators also searched several smaller cryptocurrency exchanges. At present, the regulatory agencies in various countries are strengthening the supervision of cryptocurrency exchanges.
The Japanese financial regulator also penalized several cryptocurrency exchanges in March this year. Penalties included the suspension of two of them for one month.
Also this month, the cryptocurrency trading platform Bitfinex issued a statement on Twitter that showed that the platform recently sent letters to some users asking them to disclose tax information and the exchange would share information with the government.
According to reports, Bitfinex is registered in the British Virgin Islands (BVI). According to the BVI law, Bitfinex is obliged to submit specific information to the BVI government. According to the notice, the deadline for submission of information is May 24, and the user must complete the self-certification form. Of course, those who do not receive the letter do not need to submit any certification to the platform.
In addition to continued policy tightening, Mt. Gox went bankrupt and its trustee Kobayashi is preparing to sell another bitcoin. According to Blockchain.info, 8,200 BTCs were transferred from the fund's cold wallet. In response, Bitcoin’s price has fallen below US$9000 because people fear that these cryptocurrencies may be sold in the online trading market instead of trading on the OTC platform.