Bitcoin $BTC is suffering another very bad day, now trading at $7,163 as this is written, for a 15.25% fall in the last 24 hours.

Many crypto currencies have suffered far worse falls, and the current average fall of those in the crypto top 20 today is now around 20%.

 

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The bitcoin fall may cause leveraged investors problems.

 

 

Bitcoin $BTC is suffering another very bad day, now trading at $7,163 as this is written, for a 15.25% fall in the last 24 hours.

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Many crypto currencies have suffered far worse falls, and the current average of the crypto top 20 is around 20%.

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Lloyds Bank, in the UK  became the third bank today to ban the purchase of Bitcoin and crypto with credit cards, following on from Bank Of American and JPM in the states last Friday. Whist this move initially looks prudent, I’m not sure if its ethical to dictate to people what they can do with their money!  For example, if they spend it on an expensive holiday it’s OK, but there’s nothing tangible left of that  money at the end of it, but spend it on on Bitcoin, which may well increase in value, and it’s not OK?  Hmmmm?

 

But I digress.

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I think we are seeing the result of a combination of the bubble popping, countries finally getting to grips with crypto and introducing regulations, the influence of the CME Futures Contract, and maybe some leveraged players now being margined out, forcing yet more selling.

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At this point, if people have purchased with credit cards, it will not show up as they will ultimately have to deal with their repayments in the future, but what could be showing up now are leveraged players in China and Korea being margined out, and forced selling, which then drags it down even further, in a death spiral.

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It will be interesting to see where the selling stops, as usual, people could only perceive an inexorable rise, with no possibility of a fall back.  Now sadly  the reality has arrived.

 

 

 

 

 

 

 

 

 

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