Bitcoin is trading around $ 8300. It lost the crucial $ 9000 mark after confusion from Binance resulted in Bitcoin losing $ 500 in a matter of a couple of hours.
Recently, reports in Japanese Media surfaced that Japanese authorities have ordered Binance to shut operations in Japan. The reports which came out were only from private sources. There were no verified reports.
On the other hand, the co-founder of the exchange, He Yi clearly stated that there is no such order. However, this is the largest cryptocurrency volumes. This is the reason why any news related to this cryptocurrency can lead to a fall in the price of Bitcoin. This is exactly what happened. After the rumors came out, Bitcoin fell by almost $ 700 to current levels where it is trading around $ 8300.
Also, it seems like more and more countries are creating a proper framework in order to legalize Bitcoin trading. However, arbitrarily shutting down the operations of cryptocurrency exchanges will surely hurt the confidence. Also, Japan is very strict when it comes to cryptocurrency market. A large part of the total volumes is generated from Japan. This is the reason why any regulatory curbs in Japan can have a drastic impact on the cryptocurrency market.
If this exchange stops operating in Japan, it can be a big blow to the overall cryptocurrency market. As a result, Bitcoin has also fallen by 8% to 10% in a matter of few hours.
Moreover, many other countries are trying to regulate Bitcoin. As a result, such negative news keeps on coming in the cryptocurrency space. This is the reason why Bitcoin fell significantly on any kind of negative news. Moreover, with the regulatory events curbing Bitcoin trading in cryptocurrency trading, the number of investors is getting reduced.
Most of the cryptocurrency investors do not have any problems with increased regulation. The only problem is when there is a blanket ban of cryptocurrency on any particular exchange. This results in immense volatility in the market so investors lose a significant amount of money when the volatility in the cryptocurrency market increases significantly. This is the reason why any such rumor can impact the cryptocurrency market significantly.
Currently, however, it is trading around $ 8300. Many of the investors are trying to figure out if the news is real. If indeed, it is real or it can happen in the near future, Bitcoin will fall much more. For now, however, there is no confirmation.