Looks like the recent urge put forward by the head of the International Monetary Fund (IMF), to round the globe regulators, asking to crack down on cryptocurrencies, as they hold the potential to be a “major new vehicle for money laundering and the financing of terrorism,” actually worked.
March 14, 2018, Wednesday witnessed Bitcoin hit a one-month low. Starting off trading at $9,144.15, during the afternoon trading Bitcoin’s price slipped under $8,300. Today Bitcoin had started trading at $8,196.90 today, which is more than 11 per cent down on its opening price on Wednesday. According to CoinDesk, the coin had fallen by approx. $500 in the mere space of six hours.
It is believed that this tremendous fluctuation came off Google’s cracking down on cryptocurrency as well as initial coin offering (ICO) advertising on its platform as well as the statement released by the head of IMF. According to Google, they are trying to crack down on the malicious adverting and numerous phishing scams hiding behind ads and clickbait headlines.
It is safe to say that the volatility seen in bitcoin prices this week in markets for has not been exclusive to it.
OnChainFX, which tracks the cryptocurrencies’ prices, released date showing that the top 20 market capitalized coins were all down on Wednesday, the highest fall was seen in IOTA and NEO Gas, dropping by 13.3 and 15 percent, respectively.
In the statement released by Lagarde, the IMF head, the example of the AlphaBay “darkweb” marketplace was given. These were used to launder over $1 billion before being taken down. She also went on to say that the “extreme volatility” of crypto-assets could “easily create new vulnerabilities” in the financial system.
While Wednesday might seem like a dark day for crypto currencies, following the moves of IMF and Google, we can say that it wasn’t all bad. On the bright side of the coin, Lagarde made a suggestion saying that the blockchain technology, the backbone of cryptocurrencies such as bitcoin could be tremendously useful and possibly be used for regulatory purposes for cryptocurrency space.
Content writer, Blocknext solutions