The prices of cryptocurrencies have fallen massively during the last few days. But what is causing this big decline. Well, I can think of the following three main reasons.
1. India's finance minister says Bitcoin and other cryptocurrencies are not legal
India's finance minister said that the government of India does not consider Bitcoin as a legal tender [1]. However, this is an unnecessary FUD, as purchasing and selling of Bitcoin and other cryptocurrencies is still allowed in India.
2. China bans cryptocurrency trading completely
China has completely banned cryptocurrency trading [2]. At the end of 2017, they just banned trading on domestic exchanges, but now they have even banned trading on foreign exchanges.
3. Some banks have banned purchasing cryptocurrencies with their credit cards
Some major banks have banned purchasing of cryptocurrencies with their credit cards [3]. However, this is yet another unnecessary FUD, as you can still buy them with your debit card.
Will the prices go down even further?
Probably yes, because US's major financial regulatory authorities will solely discuss about virtual currencies today (6th February) [4]. Depending upon the outcome of that meeting, the prices can go further south!
References
[1].https://www.hindustantimes.com/india-news/union-budget-2018-bitcoin-other-cryptocurrencies-not-legal-govt-to-eliminate-their-use/story-MrpXhzzrc9HwNxItWuGw3L.html
[2].http://www.scmp.com/business/banking-finance/article/2132009/china-stamp-out-cryptocurrency-trading-completely-ban
[3].https://www.extremetech.com/internet/263351-major-banks-begin-banning-cryptocurrency-purchases-credit-cards
[4].https://cointelegraph.com/news/us-sec-cftc-to-focus-100-on-crypto-in-dedicated-hearing-next-week