Why is Bitcoin crashing? Worst week since 2013

Why is Bitcoin crashing? Worst week since 2013

Bitcoin price closed the week over 30% negative around 3,786.00, its worst week since April 2013 and the first close below the 4,000 mark since September 2017. A cocktail of rumours, negative sentiment and legal problems have pushed the crypto king to 14-month lows.

Here is a news roundup of what happened in the crypto world the week we just closed.

Bitcoin crash: Crypto Civil War

The crypto market was pushed into a civil war following a Bitcoin Cash software upgrade that divided market into two factions that are still digesting how to deal with one of the new coins that aim for the destruction of the others. Following the crash in major cryptocurrencies, people were asking themselves if will bitcoin rise again?

Experts considered that as a short-lived movement, but time proves them wrong. The damage is significant, and sentiment needs a change of perspective or time to heal. The question now is how low will Bitcoin go?.

After a week of war, the damage in crypto value has been done is huge. BTC/USD closed the week 32% negative, while Ethereum, the second largest cryptocurrency by market value, lost 38% since Monday, November 19, and it traded as low as $110,25, its lowest level since June 2017. Ripple fell 32%, LiteCoin 31%, Bitcoin Cash 37%, and including the previous week, BCH/USD is 66% down in just 15 days.

What’s happening to Bitcoin? US DoJ believes in manipulation

The US Department of Justice was reported to focus on coin manipulation about its Bitcoin rally investigation on Tuesday, according to a report published by Bloomberg.

US DoJ is investigating 2017 epic rally in Bitcoin price as the prosecutors believe that Tether and Bitfinex did spoofing on Bitcoin, or placing fake orders to make the price move and then eliminate those orders.

Tether is used by traders to bet on price moves for other cryptocurrencies, it works like a tradable futures asset, but it is a token that is more stable than other crypto coins.

Bitcoin Miners to pay a full energy bill in Norway

The ages of almost free electricity to Bitcoin miners in Norway will come to an end on January first as the government of Norway decided to end the discount that data centres producing cryptocurrencies have been getting in the last years.

Norway offers tax credits for companies in the power-intensive industries with a capacity of more than 0.5 megawatts. However, Bitcoin miners will have to pay regular electricity bill in Norway at a rate of $1.93 per kilowatt, a significant raise from the previous $0.05 paid for each kilowatt they used. It is a direct regulation on crypto miners.

Riot Blockchain still under investigation

Regulators are into the crypto world and Riot Blockchain is not the exception. In fact, the company revealed in its latest quarterly filing that the SEC investigation into the company that was reported initially in April is still ongoing.

The SEC is still focused on “unsettled nature of accounting treatment for the Company’s cryptocurrency mining and the fair value method selected by the Company.” However, Riot published a press release last month saying that the SEC had terminated its section 8(e) examination.

According to the press release, “the Company announced today that it has received written notification from the regulator that the SEC has terminated its examination under Section 8(e) of certain of the Company’s registration statements, which the Company had previously announced earlier this year. The previously disclosed separate SEC investigation associated with the subpoena received April 9, 2018 is still ongoing, and the Company has been cooperating with the SEC in that investigation.”

Long story short, The SEC finished an examination in a specific topic, but this type of controls could have led to another examination.

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