This Thursday, investors saw Bitcoin fall to $7,800, with major altcoins demonstrating a similar downward trend. The benchmark cryptocurrency has somewhat recovered, now trading near $8,200. CoinDesk predicts that BTC price will test the $6,000 level in the next couple of weeks, though not before recovering first to $8,600-$9,000.
Google and the U.S. SEC are largely behind this trend, with the former disclosing its intention to ban all ICO and cryptocurrency-related advertising, starting this coming June. The SEC, on the other hand, has been sending subpoenas to crypto exchanges and cryptocurrency hedge funds in effort to ensure that firms are valuing holdings appropriately and keeping client assets secure.
It’s worth noting that during the latest U.S. Congress hearing on ICO and cryptocurrencies, the participants divided into two groups, with the first one insisting on introducing strict regulation at once, while the second suggested they first gain more knowledge on the subject before adopting a relatively moderate regulatory approach. In all, it seems that a market that was created as an alternative to the current financial system is now under pressure from the authorities and has become dependant on U.S. Government decisions.
Interest in cryptocurrencies has declined, now having a negative impact on rates and transaction cost. According to BitInfoCharts, Bitcoin transaction fees are at $1.7 as of March 12, with similar pricing last observed in May 2017, when Bitcoin was trading near $1,855, that is 4 times lower than current levels.