Bob Pisani Of CNBC Breaks Down Bitcoin’s “Crisis Of Confidence”
Everyone around the crypto ecosystem is worried about Bitcoin’s prices, which has fallen below $ 6,000. Now even mainstream media outlets want to get their fingers around this situation. In the recent segment of Fast Money, CNBC’s Bob Pisani gave his views on what the recent reasons for Bitcoin’s loss in confidence are.
Bob says that this week’s loss in crypto’s confidence is due to the security of exchanges. Bitcoin’s prices fell around 7% today after Japan’s regulators ordered the crypto exchanges running in the country to step up its game around security. This was to prevent money laundering, terrorist financing, and unauthorized access.
Notably, hacks of two South Korean exchanges have been a major blow to the entire crypto industry’s security and confidence. Following a break-in on Wednesday, Bithumb had halted its services for a time being. Preceding Bithumb’s hack CoinRail was hacked too, all in a matter of just a week. Cumulatively the two prominent exchanges lost more than $ 70 million. Many crypto exchanges globally have clarified that they will suspend creations of new accounts till they ramp up their security.
Another reason for the loss in confidence of cryptos is Bank For International Settlements saying cryptos are unstable and consume too much electricity. They even warned institutional investors against the vulnerability of cryptos to be subjected to too much manipulation and fraud.
He goes on to paint a perspective of this vulnerability by pointing out that we have already reached the lowest point of the year in bitcoin prices and between the two valleys on the graph, the peak was almost 100% more.