Bitcoin value dropped under $10,000 Thursday, falling to its lowest level in the past week. This information comes from it’s Price Index of Coindesk. It had hit $11,000 plus earlier in the week, but then dropped back again. According to some, this may have been due to profit-taking when the cryptocurrency hit the $1,000 level.
This represents a drop of around 5% on its previous value. It dropped to a $9,796.57 low, the lowest level it has reached in a week. Bitcoin dropped below $10,000 Friday, and then recovered, but has now fallen below that level again. Apparently, the full reason for the decline in it’s value is yet unknown. Part of it is believed to be due to profit-taking. Others put it down to some resistance to the cryptocurrency crossing from $10,000 to $11,000.
Bitcoin Value Recovery Due to South Korea Backing
This is not the lowest level to which it has reached recently. The cryptocurrency had fallen below $6,000 earlier in the month, but recovered to hit over the $11,000 mark. This was partially due to South Korea backing away from an outright ban on the cryptocurrency.
This is a major market for Bitcoin, and stringent measures were expected to be announced. However, they were not as strict as expected. Bitcoin reached $20,000 in December, but in spite of its current value, it is still 740% higher than at this time last year.
Are Bitcoin Securities or Tokens?
Recent actions by the Securities and Exchange Commission (SEC) raised questions as to the legal status of it and other cryptocurrencies. The question is whether cryptocurrencies, including Bitcoin, are securities or utility tokens. If they are securities then they would be subject to oversight by the SEC.
Cryptocurrencies appear to be getting created on a more regular basis, and perhaps this is why so many authorities are becoming increasingly more nervous about them. Just recently, the Japanese cryptocurrency exchange Zaif announced that a price calculation system error enabled some people to purchase some digital currency at a price of zero Yen!
Cryptocurrency Exchanges Insufficiently Regulated
It still seems as though the cryptocurrency exchanges are insufficiently regulated, and that the market for such currencies is still volatile. Ultimately it might be that more stringent oversight and regulation is needed in the generation of new cryptocurrencies. Fraud and profit-taking can have significant effect on the value of even the more established cryptocurrencies such as Bitcoin and Ethereum.
