In an emailed statement to CNBC, Ari Paul, chief investment officer at BlockTower Capital, said, “Focus has shifted to negative regulation with headlines out of South Korea, China, and even minor headlines from France and the US.” He added that the reports have big impact because Bitcoin “was overbought and the sentiment reached exuberant levels.” The situation set the “stage for the violent correction that we’re seeing.”
In China, the government intensified its crack down on cryptocurrencies. Last year, the Chinese government banned cryptocurrency exchanges. It is now extending its restrictions on over-the-counter and peer-to-peer platforms.
In the United States, the Securities and Exchange Commission (SEC) ordered at least 15 funds to pull applications for bitcoin-related exchange-traded funds
Sell-off provides second opportunity to invest in Bitcoin
In a separate statement to Bloomberg, Paul said, “This is an overdue correction triggered by South Korean regulation fears.”He added that many investors are excited to see Bitcoin below $10k. The consider the decline a “second opportunity to enter at a price they feared they’d never see again.”
