Bitcoin falls: what's the reason?

Average Bitcoin price reached $6800 mark; let's figure out, what's the background
10 November

Bitcoin Price

On 10th of November, at 9:24 UTC price of first cryptocurrency started to fall.

Bitcoin price chart
Bitcoin price chart

At the moment of press, Bitcoin is being traded for even less than $6800 at some exchanges, for example, Bitfinex, Kraken and HitBTC

Bitcoin price at different exchanges
Bitcoin price at different exchanges

Main market parameters of Bitcoin at the moment of press are:

  • Average price $6817.56 
  • Market cap $113,675,484,123 
  • 24h volume $3,855,700,000

Possible reasons

One of the possible reasons for such a rapid fall in the price of the first cryptocurrency may be that after the announcement of the developers of SegWit2x cancellation the "disappointed" part of traders transfer assets to other crypto currency or fiat money.

As for SegWit2x, although it is officially frozen, a number of recent events indicate that certain something is taking place behind the scenes, the consequences of which are likely to become known soon enough.

For example, almost unknown Bitcoin mining pool bitPico said that they will still try to implement hardfork. They also say that they have control over 30% of Bitcoin network hashrate. Still no solid proof on this statements.

Also a mysterious website bitcoin2x. org was discovered. It differs little from bitcoin.org. On its main page there is SegWit2x related statement. Also, the site's creators say that they will not allow six people to decide the fate of the bitcoin, and the previously assigned date of the hard-fork (November 15) remains in force.

We have decided to continue with the fork as planned. We will not allow the destiny of Bitcoin to be controlled by 6 individuals.

Same date - November 15th.

Bitcoin2x is a secure payment network with cheaper and faster transactions
 

Bitcoin2x Team Statement

Who is behind this resource, is still unknown, also draws attention that the link to Developer Documentation leads to a non-existent page.

This price fall looks interesting on the background of Bitcoin Cash price jump

Israel will reveal the status of cryptocurrencies in the next six months

Now in Israel people should make their decision on Bitcoin and it will be claimed soon
20 November

 

Israeli Ministry of Finance announced they will do some research on Bitcoin and cryptocurrency together with accounting firms.

This decision came from meeting initiated by Finance Minister Moshe Kahlon. At the meeting they realized Israel wasn’t prepared to accept cryptocurrency.

We are leading this with the minister and very happy to see he is all for it. The committees will begin their operations very fast. In my opinion, we will see results on the ground in up to six months.

 

Moshe Hogeg, Israeli serial entrepreneur.

The situation with uncertainty on Bitcoin mentioned above created a lot of trouble for businessmen and users on cryptocurrency.

For example, in June Tel Aviv district court announced that banks may reject Bitcoin ventures because of the inability to verify the KYC and AML. Also Israeli Tax Authority decided that if Bitcoin is not a legal currency, the sales of BTC will hurt adoption.

Although not everyone supports the recommendations of researchers. In Israel there is at least one high-ranking placeman who is convinced in pernicious impact of cryptocurrencies for economy and many share his view.

The Head of Israel Securities Authority (ISA) expressed his opinion that Bitcoin and ICOs should be strongly regulated. ISA instituted its own committee to assess regulations on Bitcoin and other cryptocurrencies.