The crypto market has been remarkably volatile since it’s inception. And with every release of a news story, either positive or negative, often sends the prices of crypto up or down.
This month, Bitcoin and crypto were dealt two punches, starting with China’s announcement to a halt on all upcoming ICOs. Then there was the CEO of JPMorgan coming out and saying Bitcoin was a ‘fraud’.
These were after Bitcoin had just climbed to a record high of a just short of $5,000. Over the past few weeks since achieving a new price record the crypto market had fallen from $180 billion to $112 billion, according to CoinMarketcap. As of this writing, Bitcoin has been sideways at around $4,000 and Ethereum at $300.
Chinese regulators get involved
Probably the biggest reason for the sell-off in crypto assets has to do with the Chinese government getting ready to regulate ICOs and other cryptocurrencies.
China a centralized country and the progressive agenda of a decentralized blockchain technology could be consistent with what the Chinese government would want.
The cryptomarkets have reacted bearish to the news coming out of China and some Chinese crypto firms have received notice to shutdown their exchanges and mining operations.
CEO Jamie Dimon: Bitcoin is a ‘fraud’
JPMorgan CEO, Jamie Dimon had nothing good to say about Bitcoin when interviewed at an investor conference. The CEO compared Bitcoin to the tulip bubble and said that Bitcoin is useful for drug dealers, murders, and people in North Korea.
The CEO did go on to further say that his daughter does own Bitcoin and there are divisions in JPMorgan that are currently working on blockchain development.
South Korea ends the month with an ICO ban
After the dust seemed to have settled following China and Dimon, the cryptomarkets were on their way to a recovery. But on Friday, South Korean’s Financial Service Commission announced they would be be banning initial coin offerings
The South Korean statement said “stern penalties” will be issues on any parties involved in ICOs and didn’t elaborate more.
Fundamentals still remain the same
Even with all the negative news the volatile swings for crypto are nothing new. Despite the recent lose in value the crypto and blockchain industry as a whole has grown since the beginning of the year. Ethereum, Bitcoin and Litecoin have gained value by multiple times in just a few months.