Bitcoin’s price plummeted below $7,500 as the cryptocurrency market continues to be roiled by Twitter’s decision to ban crypto ads. The price of one bitcoin hovered at about $7,439 at 19:00 UTC on March 29, down 6.26 percent from 24 hours earlier.
All 10 of the top 10 cryptocurrencies by market capitalization experienced similar price slumps, with Ethereum, Ripple, Tron, Litecoin, and Bitcoin Cash diving more than 5 percent.
Technical analysis suggests BTC remains actively in “sell” territory after getting crushed this week on the back of Twitter’s move to join social media giant Facebook and search engine monopoly Google in banning crypto advertising.
Facebook — which is ironically embroiled in a data-breach scandal — had announced its embargo back in January 2018, citing the need to protect users from “deceptive and misleading advertising practices.”
Twitter did not use similarly tough language, but said it is “committed to ensuring the safety of the Twitter community,” a rep told CNBC .
As usual, it’s not totally clear what exactly is pushing bitcoin prices up, but a glimmer of hope for the crypto ecosystem has emerged after the Cboe expressed confidence in the future of virtual currencies by urging the SEC to allow bitcoin exchange-traded funds (ETF) and exchange-traded products (ETP).
In a March 23 letter to the SEC , Cboe president Chris Concannon dismissed criticism that bitcoin and the crypto market are too illiquid and volatile to be treated like other established commodities. Concannon gushed:
“Because of its innovative features as a digital asset, bitcoin has gained wide acceptance as a secure means of exchange in the commercial marketplace and has generated significant interest among investors.
Since its creation, bitcoin has achieved significant market penetration, with thousands of merchants and businesses accepting it as a form of commercial payment, as well as receiving official recognition from several governments, including Japan and Australia.”
Concannon also insisted there is plenty of “reliable price information” from the bitcoin futures market on Cboe Futures Exchange and CME that should allay regulatory concerns about its opaqueness as an investment vehicle.
“There is real-time trade data available 24 hours a day from a number of different trading platforms around the world, with a collective volume in the billions of dollars daily,” Concannon said. “Between these various potential pricing sources, there is more than sufficient information for cryptocurrency ETPs to create reliable and robust valuation methodologies for bitcoin and potentially for other cryptocurrencies.”
Despite its recent erratic price swings, Abra CEO Bill Barhydt believes another massive bitcoin rally is on the horizon. The Goldman Sachs alum said some financial experts view the volatility as a sign that a “huge opportunity” is around the corner.
“I talk to hedge funds, high-net-worth individuals, even commodity speculators. They look at the volatility in the crypto markets and they see it as a huge opportunity,” Barhydt told Business Insider . “Once that happens, all hell will break loose. Once the floodgates are opened, they’re opened.”