What Caused the Recent Plunge in Cryptocurrency Prices?

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The rapid tumble down from Bitcoin’s high price of over $20,000 back in orly January and late December has not been overshadowed by a massive selloff throughout the cryptocurrency world. Many issues have come into play surrounding why this is happening and how it could be resolved in the near future. One report has stated that worries have been increasing about the price manipulation possibilities with Bitfinex, one of the largest cryptocurrency exchanges in the world.

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The Commodity Futures Trading Commission recently sent a subpoena to the company to receive all of their information on trading and generally how they conduct their business. This issue is still in the works and remains quite complicated with little information coming out. Bitcoin has managed to drop to as low as $7,000 as of Monday, February 5th, according to many different exchanges. The coin has been in essentially a free-fall for the past week or two, with the coin dropping to new lows that it has not seen in months. Another issue that has remained in the crypto world is the issue of the U.S. Securities and Exchange Commission, who has stated that the will continue to put a large amount of regulatory measures into play for the crypto world.

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In addition, Japanese regulators have stated a similar opinion on the subject. Both regulatory industries have been working to place regulation for the industry so that investors can feel more protected in such a wildly volatile market. Given that there is such a large amount of money currently invested in the space, it is becoming a growing concern as to the amount of money that investors can lose. The hopes are high that any regulation will be a joint effort between the investors and those trying to regulate the market.

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