Bitcoin investors were on another roller coaster ride this weekend as the prices dropped once again. Below $32, 000 before recovering again on Monday afternoon and reached $39, 000. Bitcoin is still up by 30 percent this year-though the crypto has slid by about 40 percent from its highest record of $65, 000 in April.
The recent decline has highlighted the volatility of cryptocurrency and how investors can lose a huge amount in just a few days or hours. The whole cryptocurrency market has experienced setbacks in the recent week with government worldwide increasing scrutiny and traders preferring to liquidate their holding.
That has stopped that frenzy upward demand for the cryptocurrency, instead, the value of cryptocurrencies has plummeted more than $400 billion in the past seven days as per the CoinMarketCap, a cryptocurrency price tracker.
The US treasury is targeting cryptocurrency in the hope it could generate $700 billion. Jeff Buchbinder, an equity strategist for LPL Financial says that the cryptocurrency market stock will likely gain less as the crypto get older and more volatile.
According to Federal Reserve Chair, Jerome H. Powell, the officials are considering easing the monthly bond purchases intended to boost the economy. That has garnered some interest from E-Trade Financial. How the market will interpret that in the coming days is yet to be seen.
The cryptocurrency plunge has also come at a time U.S. Treasury is considering raising $700 billion from cryptocurrencies. The treasury also wants to enhance crypto reporting requirements. Under the requirements, companies that receive more than $10, 000 will need to provide internal services with financial information.
The Treasury cited concern posed by detection problems that facilitate illegal activities and tax evasion. The officials from the Bank of Canada have also termed the cryptocurrency market as an emerging financial vulnerability. The officials have also indicated that the market is not important to the nation as an asset class or means of payment.
As cryptocurrency becomes more mainstream, so does the fear of getting hurt increase? On Friday, the government announced that the cryptocurrency exchange based in Hong Kong would only serve users who are professional investors. That will knock in significant investment portfolio out of the regulated market.