It's been a rough January for Bitcoin - frankly, for cryptocurrency everywhere. If anything, they had their fall from grace, coming down from an exciting November and December that saw their stock price rise at an almost exponential rate. Now? They're down big time.
Bitcoin, Ripple, and the majority of other cryptocurrencies are in the red zone. But why? An easy contributor is all the government regulation that's looming over an unregulated currency. The Asian market is at risk. South Korea's ban started on January 30th and China and Japan are expected to follow suit.
The latest in what's caused the price to drop even more, comes from the coments of India's finance minister Arun Jaitley who promised a crackdown on "illegitimate activities". The comments, interpreted in all sorts of ways was enough to cause Bitcoin to continue to dip on Thursday morning.
While his comments may not have called for an outright ban, it was enough to put the market into another fright. He claimed that "the government does not recognise cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system.”
In the month of January, the top cryptocurrencies all took major hits to their value. Bitcoin dropped 24.7%, Ripple dropped 45.3% and Bitcoin Cash dropped by 36%. Ouch.
With regulatory fears still looming over the head of cryptocurrency, the only thing that's proven for now is how volatile the market is. Still want to invest in this market? Go for it, but be prepared for a lot of uncertainty and a lot of speculation.