The Bitcoin price bull run over the last month, which saw it climb from around $6,300 to highs of $8,400 in a matter of weeks, could be over.
Bitcoin has slumped by 5% over the last 12 hours, falling well below the psychological $8,000 mark as traders and investors fret over coming tax crackdowns and blockchain-based applications being adopted by the traditional financial institutions.
Bitcoin hit lows of $7,675 at pixel time, down from daily highs of $8,168, according to CoinDesk data.
Meanwhile, other cryptocurrencies are suffering — and many of them haven’t had quite the bull run Bitcoin has over recent weeks to cushion the fall.
Ethereum is down by 6% over the last 24 hours, while ripple is down around 4% and Bitcoin cash is off by 5%.
Here’s what’s pushing the Bitcoin price lower…
South Korea, which has emerged as one of the most important markets for Bitcoin and cryptocurrency in recent months, is mulling whether to pass a law that would end tax benefits for cryptocurrency exchanges. Local authorities were cited as saying “cryptocurrency transaction brokerage is not effective in generating added value.”
“While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security,” said
Hong Seong-ki, head of the crypto currency response team at Korea’s South Services Commission. “We’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention and investor protection. The bill should be passed as soon as possible.”
Meanwhile, investors have been rattled this week by reports settlement service provider CLS, computer giant IBM, and some nine other financial institutions are planning to trial blockchain-based Ledger Connect, an application that offers services from different vendors.