This has been a mixed week for cryptocurrencies. Things began peacefully when allegations began to spring up that the virtual currency had dominated its “death cross,” and that users need not worry about the slump because it was coming to a halt.
This appeared to be true as Bitcoin sprang from $6,900 to $7,100 (which is a $200 jump).
All Barricades Defied?
Under 24 hours, ideas of recovery were making rounds on social media channels, and news platforms on the internet as the virtual currency rose to $7,500 following the report that Coincheck would be rescued by Monex Group.
This upturn was short-lived, as a $600 drop in price occurred the day after, and bitcoin dropped to nearly $6,800. As at press time the coin has reached $100 less. It is trading at $6,800, which suggests that the virtual currency is holding ground, but has been undoubtedly affected by the recent trends.
The Downturn Isn’t Over
There are several reasons for this latest drop. The hack that affected Verge’s Blockchain is one. Verge, a privacy-oriented crypto, alleged that hackers might have implanted several bugs in their system to make it only peak at $15,000 to $1 million in virtual coins.
While this attack occurred on an altcoin, it has raised several questions. Verge’s Blockchain now requires proof-of-work validation, which inevitably makes users contemplate if other Blockchains are vulnerable to the same malware as well.
India’s Reserve Bank recently hinted that it intends to ban Bitcoin trading and build its virtual currency. This has resulted in adverse reactions among Indians, who feel that Bitcoin or other cryptocurrencies wouldn’t be a threat to any national electronic currency. The move could ultimately be damaging because India accounts for 10% of the global cryptocurrency exchange trades.
By banning Bitcoin in the country, users won’t be the only casualties as the country’s stability in the global cryptocurrency exchange market will be affected.