Bad week for Bitcoin

Bitcoin has had a few bad days, as the price of the virtual currency is up about 20% this week Dropped. Reports that Japan and the United States want to get a better grip on the trading of virtual currencies and the news that the receiver of the bitcoin exchange Mt. Gox is selling Bitcoins on a large scale to compensate victims did not do the market for virtual currencies any good.

At the time of writing, the price of Bitcoin stands at around $8,700, while more than $11,000 was paid for the virtual currency at the beginning of this week. A significant decline, which is not unusual in this market. At the beginning of February, the price of the virtual currency rose from $7,000 to more than $10,500 in ten days, an increase of fifty percent.

Bitcoin has had a bad week (Source: Bloomberg)

Sale Bitcoins of Mt. Gox

Last Wednesday, the trustee of Mt. Gox announced that since the end of September last year, he has been working for a total of $400 million to Bitcoin and Bitcoin Sold Cash from the stock that was left over when the stock market went under four years ago. His intention to sell the remaining $1.8 billion worth of virtual coins made investors nervous this week, as it could have a negative impact on the price of the Bitcoin.

Last week we wrote that the Transaction volume in Bitcoin has declined sharply. This makes the virtual currency vulnerable when one large party starts selling. A further price decline is therefore possible, but for some investors that will be seen as an opportunity to enter lower.

More regulation

Another development that makes investors nervous is the stricter supervision on virtual currency trading. Governments want to get a better grip on this, because they fear that this alternative money system can also be used to launder money. Japan's regulator has halted trading at two exchanges, while four others were fined. In the United States, the regulator SEC issued a warning a few hours earlier that all online virtual currency trading platforms in the United States must register.

These developments may not come as a surprise, but they are creating more uncertainty among investors in virtual currencies. This uncertainty offers opportunities for investors who are not deterred by strong price movements to get in. Since the beginning of this year, the Bitcoin price has fallen by about 35%, but compared to a year ago, the price is now more than seven times higher.

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