Bitcoin, the world’s first and largest cryptocurrency, fell 12 percent to $8,954.41 on the first day of February, after losing 30 percent of its value in January.
As we already know, Bitcoin is never lonely when it falls, so other cryptos like Ripple and Bitcoin cash have also suffered double-digit declines in the last 24 hours.
After reaching a record high of $19,511 on December 18, Bitcoin has lost more than a half of its value.
The plunge came after comments from India’s finance minister and Facebook’s ban of all ads promoting cryptocurrencies.
India takes a hard line on cryptocurrencies
The Indian government is about to ban the use of Bitcoin and other cryptocurrencies for payments, as it does not consider cryptocurrencies as legal tender.
“The government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing ilegitimate activities or as part of the payment system,” said Arun Jaitley, India’s finance minister.
On the other hand, the Indian government embraced blockchain, unveiling that it will explore the use of blockchain technology proactively for ushering in digital economy.
China is another country which started a serious bitcoin suppressing, which is quite paradoxical considering the fact that China is home to the world’s biggest community of Bitcoin miners.
Facebook bans cryptocurrency advertisements
Besides Indian government, one of the main factors which influences Bitcoin’s fall is Facebook’s decision to ban all ads that promote cryotocurrencies.
“Sentiment towards cryptocurrencies is turning soar with negative headlines pouring out from left, right and centre. Concerns that Facebook is banning ads and major crypto exchanges shutting down have really silenced the hype and some people are probably having second thoughts about investing their hard-earned cash into digital currencies,” said Fawad Razaqzada, an analyst at Forex.com.
Ads that violate new policy will be banned on Facebook’s core app, but also in other places where Facebook sells ads, including Instagram and its ad network – Audience Network.