Bitcoin is struggling. Following yesterday’s unimpressive but steady balance at $9,130, bitcoin has fallen by nearly $1,000 and is now trading for less than $8,300.
The news likely stems from an announcement by Google, as the popular Internet search engine has sworn to ban cryptocurrency and ICO-related ads in the coming months and to crack down on digital currency scams.
Similar sentiment was witnessed amongst Facebook executives earlier this year. The social media platform made a similar decision to ban cryptocurrency advertisements, which sent the price of bitcoin spiraling downward by approximately ten percent. While the fall is not as large this time around, bitcoin’s price has sunk nearly eight percent, which puts the damage on a similar scale.
Google and Facebook are arguably two of the most powerful Internet companies in modern times, and if they say bitcoin and digital currencies aren’t all they’re cracked up to be, people are likely to listen, although CEO of Coinbase’s UK branch Zeeshan Feroz feels differently. He says Google’s crackdown will not “dampen” consumer demand anytime soon, but he did criticize the ban for being “too widespread.”
Google has divisions all over the globe, which means bitcoin and altcoin coverage is going to be cut significantly, and it may take time for a respective bull run to occur again.
The ban will not take place until mid-June, which leaves many speculating as to why bitcoin would experience such a drastic fall at press time. The answer may be simple: that not all the kinks surrounding bitcoin have been worked out yet. Despite ten years of availability, bitcoin is still a fluctuating, changing, and ultimately “birthing” market, thus leaving it vulnerable to several factors. Announcements like these can have drastic effects on the price, and it is possible users may see another fall in June when Google fully implements the ban.
Managing Partner and CEO of $APEX Token Fund Chris Keshian is asking Google to “keep an open mind,” and to not “tar all cryptocurrencies with the same brush.” For the most part, he sees the move as somewhat progressive, as the ban is simply a “pause” in bitcoin’s present run. He feels the move is likely to give bitcoin more time to mature and adapt to newer regulations, as they will undoubtedly come along.
One source suggests bitcoin could stay “in the red” until late September this year, when Mt. Gox – the infamous exchange that lost nearly half-a-billion in bitcoins in February 2014 – is slated to sell off its remaining crypto stash.
The company still holds approximately $1.5 billion USD in cryptocurrency assets, and the sell-off may happen once it obtains final permission from a Japanese court. The initial hearing will take place on September 18, suggesting that bitcoin may be “food for the bears” over the next six months. While some are still suggesting leaps can occur in the bitcoin price arena, we cannot ignore the fact that Mt. Gox was, is, and probably always will be a major influence on the father of all digital currencies.