Bitcoin price when compared to last year has eroded substantially this year till date. And, the plunge hasn’t stopped yet. The fall in the prices of the digital currencies is primarily due to the two reasons. Bitcoin price was trading at $9,761.91 up 2.58 percent on Coindesk today at the time of reporting.The highest it reached today was 9,804.55. Despite these slight gains, there is still a long way to go before the virtual currency matches the highs set by it last year. Here are the three reasons behind Bitcoin price fall. Last week three negative news related with cryptocurrencies triggered their plunge.The first was related with Nobuaki Kobayashi, the Mt. Gox. Trustee, that he sold $400 million of Bitcoin and Bitcoin cash in the January and February this year. He still owns $1.7 billion worth of Bitcoins and this is adding further fears in the market.

Then there was a rumour in the market that popular crypto exchange Binance has been hacked in an attempt to influence Viacoin’s price. Securities Exchange Commission (SEC) issued a statement last week that cryptocurrency platforms should not be called by the name of exchanges since it creates an illusion of regulated activity. Investors are misguided in believing various online trading platforms to be SEC-registered and regulated marketplaces when they are not, SEC said. Even the Financial Services Agency (FSA) came out with a statement that domestic cryptocurrency exchanges will be suspended. All these factors lead to nearly 11 percent plunge in Bitcoin price.

Last month, Nouriel Roubini, the famous economist who successfully predicted the US housing crash in 2008, said that Bitcoin is mother of all bubbles and it’s also the biggest bubble in human history if you compare it to Mississippi bubble, tech bubble, and Tulip mania.
“I think we’re back in the natural market range now and we should continue to see growth through 2018. I’m more bullish today than I’ve ever been.”

Pompliano also adds that Bitcoin does react to positive news, and that there are often spikes associated with that, but there has not been that much positive news of late.

“Additionally, I don’t think there is any specific positive news to drive a bull market. We’re seeing a hangover feeling among retail investors because of regulatory concerns, along with the last few months of bear market. Once we get a few positive news items, we should see quick inflection points,” he concluded.

There has been some good news relating to blockchain adoption, and while it is not being separated from Bitcoin, the technology adoption may not play in to the price of Bitcoin directly, as Pompliano adds, but it is still exciting to see.
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