Bitcoin price has been falling roughly by 7 percent Monday to below $8,000 by following weeks of regulatory uncertainty and advertising crackdowns by tech companies.
The cryptocurrency was trading near $7,886 with more than $600 lower than a day earlier, according to a report. This time it is more than 42 percent year to date after starting this year above $13,000. Social media giant, Twitter announced on Monday that it is going to ban advertising for cryptocurrencies, following similar bans by Google and Facebook to crack down on fraud in initial coin offerings.
“Today’s news on Twitter’s ban is likely a significant contributor to the steep sell-off,” said Timothy Tam, co-founder of crypto-market intelligence platform CoinFi. “As new retail investors enter cryptocurrency, a large portion of them are trading on raw emotion.”
The cryptocurrency value dropped by more than 12 percent in late January after Facebook, said that it would ban all ads which are going to promote any cryptocurrencies to prevent the spread of what it called “financial products and services frequently associated with misleading or deceptive promotional practices.”
Google also, announced an update to its financial services policy of rules and regulations earlier in March that will restrict advertising for “cryptocurrencies and related content” starting from June.
“Given that the larger and more significant platforms have already made this move, I wouldn’t expect Twitter’s news to have much of an effect,” said Spencer Bogart, a partner at Blockchain Capital.
Bogart pointed to Twitter CEO Jack Dorsey’s stance on bitcoin. “Jack Dorsey is a big believer in crypto so that I would read between the lines on any announced ‘ban,'” he said. Dorsey, who is the CEO of the square, told the Sunday Times newspaper this week he thinks bitcoin will become the single global currency within the next few years, “but it could go faster.”
Regulatory news has been another driver of price moves in the year 2018. Financial watchdogs have been vocal about potential risks in ICO, or digital coins which are released with the help of a fundraisers known as token sales.
The U.S. Securities and Exchange Commission stepped up efforts to police the process of fundraising with the scores of subpoenas that have been reported earlier in March.