The year 2018 for Bitcoin had been nothing less than a roller coaster ride, where the market participant had witnessed a significant decline and only hope for it to rise again. Even if we compare the current price[as [ I write this article, the Bitcoin(USD) price is $6,300.44] to the time when new year knocked our doors[trading at 13,542.55 ], we have witnessed a significant plunge.
What could be the possible reasons for Bitcoin to get miscued? Let’s look at some of the major events that happened this year and resulted in Bitcoin price decline.
Major Events that Affected the Bitcoin Price This Year
Dec 28, 2017 – South Korea eyeing potential shutdown of cryptocurrency exchanges
According to a statement from the Office for Government Policy Coordination – South Korea will require real-name cryptocurrency transactions and impose a ban on the offering of virtual accounts by banks to crypto-exchanges. Releasing a statement, the government said Cryptocurrency speculation had been irrationally overheated in Korea. The government can’t leave the abnormal situation of speculation any longer.”
| Bitcoin Price on 28-Dec-2017 | Bitcoin Price Next Trading day |
| $16064.44 | $14621.88 |
Jan 8, 2018 – CoinMarketCap hashed prices from South Korean exchanges
The Market in the second week of January 2018 witnessed a drop in Bitcoin price after a website CoinMarketCap removed prices from South Korean exchanges from its calculations of digital currency rates without any warning.
CoinMarketCap, a widely followed website by market participants that shows real-time prices for around 1300 + cryptocurrencies. With a sudden movement of exclusion of data from the South Korean exchange, it confused market participants and triggered a selloff.
| Bitcoin Price on 08-Jan-2018 | Bitcoin Price Next Trading day |
| $16834.12 | $15546.07 |
Jan 30, 2018 – Facebook bans cryptocurrency ads
As per Facebook new policy, it prohibits advertisements that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings, and cryptocurrency. The move was triggered due to persistent complaints about spammy and fraudulent cryptocurrency ads; Facebook has issued an outright ban. However, the new policy is sure to be welcomed by Facebook users and bitcoin enthusiasts alike, who recognize that these adverts do little to promote the benefits of cryptocurrency.
| Bitcoin Price on 30-Jan-2018 | Bitcoin Price Next Trading day |
| $11400.77 | $10788.89 |
March 7, 2018 – SEC says crypto exchanges must register with the agency
In a statement on Wednesday SEC noted – that online platforms trading digital assets that are considered securities need to register with the agency. Bitcoin price slashed, fearing that tightening regulation could restrict future trading.
| Bitcoin Price on 07-Mar-2018 | Bitcoin Price Next Trading day |
| $11091.64 | $10474.36 |
March 14, 2018 – Google Bans cryptocurrency ads
As per Googles new financial products policy effective from June 2018, Google would no longer be serving as an ad platform to binary options, cryptocurrencies, ICO’s cryptocurrency wallets, trading advice. Google in a statement to CNBC said – we want our ecosystem to be safe and effective, and as the cryptocurrency market is unregulated and has been hit by a lot of scams, we need to take some measures.
| Bitcoin Price on 14-Mar-2018 | Bitcoin Price Next Trading day |
| $9208.96 | $8832.15 |
March 26, 2018 – Twitter bands cryptocurrency ads
Following Facebook and Google, Twitter also amended its policy in banning cryptocurrency ads. As per Twitter spokesperson – Under this new policy, the advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally.
| Bitcoin Price on 26-Mar-2018 | Bitcoin Price Next Trading day |
| $8676.53 | $8256.81 |
April 01, 2018 Bitcoin close to Death Cross chart pattern
Chart analysts saw an alarming trend in bitcoin’s pricing pattern; the one termed as Death Cross. Although experts were arguing if Death cross would be good or bad, it was undoubtedly a signal of bearish market leading to more decline in bitcoin prices.
| Bitcoin Price on 01-Apr-2018 | Bitcoin Price Next Trading day |
| $7041.48 | $6842.43 |
May 11, 2018, South Korea’s exchange Upbit is suspected of fraud.
As reports surfaced that one of the largest executors in South Africa Upbit is suspected of fraud, the bitcoin price dropped below $9000 mark.
| Bitcoin Price on 11-May-2018 | Bitcoin Price Next Trading day |
| $9289.09 | $8728.95 |
May 23, 2018, India proposes 18% tax on cryptocurrency trading and Regulatory Uncertainty pushed by US and Canada
As per a proposal under discussion by the Central Board of Indirect Taxes and Customs India, cryptocurrency trading that would be classified as intangible goods may attract 18% Goods and Services Tax (GST).
On the same day, the financial authorities in the US and Canada declared a cooperative crackdown on initial coin offerings (ICOs) and other cryptocurrency investment schemes, led by the North American Securities Administrators Association (NASAA).
The two roller coaster news triggered a decline in Bitcoin pricing further.
| Bitcoin Price on 23-May-2018 | Bitcoin Price Next Trading day |
| $8262.65 | $7818.21 |
June 11, 2018, South Korean Exchange Coinrail hacked
Although experts believe that the price plunge has nothing to do with the exchange being hacked, some people had a different opinion. Overall, there was a dip in the Bitcoin price, and market participants were hoping the next trading day would help them to revamp.
| Bitcoin Price on 11-June-2018 | Bitcoin Price Next Trading day |
| $7158.95 | $6786.98 |
The Bitcoin Price Trend Predictions
Though Bitcoin prices have declined this year, many experts believe a correction to be made in coming months.
Arthur Hayes, CEO of BitMEX stated:
“Well, I think that something that goes up to $20,000 in one year can have a correction down to around $6,000.” Later on, adding about the cryptocurrency, he says – one positive regulatory decision away, maybe an ETF approved by the SEC, to climbing through $20,000 or even $50,000 by the end of the year.”
On the other hand, Clem Chambers, Founder of ADVFN says – “It will probably hit $2,000 before it hits $20,000.” Later he also added that Bitcoin “is quite likely’ to eventually hit the $100,000 price level.
Another crucial statement was stated by The Founder of Fundtsrat Tom Lee, he says – Bitcoin can reach $25,000 by the end of the year or something like that.”And his predictions are based on future Bitcoin mining costs.