Bitcoin and other cryptocurrencies had a week to forget. Bitcoin prices plunged close to 40% on the back of a slew of an onslaught by regulators and tax authorities around the world. Top on the list of news that triggered the selloff was the comments by the South Korean Finance Minister, which reinforced comments made the previous week by the Justice Minister on the intention of the government to enforce a ban on cryptocurrency trading. South Korean exchanges account for a lot of the global demand for exchange-based Bitcoin trading, and the announcement jolted the markets, sending them into a tailspin. Bitcoin fell as slow as $9,300 at some point in Thursday trading, before rebounding slightly to $11,200.
There has been talking of similar bans being implemented in many countries. In India, regulators have started to pursue cryptocurrency investors over unpaid capital gains tax from profits made on the 9 Indian crypto exchanges.
With Citibank issuing a statement to indicate that it expects Bitcoin to fall all the way down to between $5600 and $5800, the outlook for the week for Bitcoin is expectedly bearish. There is a lot of fear on the market right now and the chance of seeing more buying into Bitcoin seems to have drastically reduced.
Bitcoin daily chart
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