Just as it shows positive momentum right after the U.S. Securities and Exchanges Commission rejected the Winkleboss brothers’ exchange-trade fund (ETF), Bitcoin’s price fell once again below the $8,000 mark Tuesday, hitting $7,948 for the first time in more than a week.
According the data from CoinDesk, the top cryptocurrency by market capitalization fell from its usual $8,000 level on July 31, then hitting $7,500 mark during the wee hours of August 1.
As with any movement in Bitcoin’s price, other coins have also experienced a significant decline over the past 24 hours. Ethereum, the second top cryptocurrency, was also down by more than 7 percent, while Ripple XRP also slumped by 5 percent.
Elsewhere, Bitcoin Cash also went down by 5 percent, while Litecoin was also off by 3% over the past 12 hours.
While we all know that the market can change anytime soon, it’s important to note what’s likely triggering the crash. As reported by various outlets on Tuesday, South Korean authorities are now studying the possibility of passing a law that would end tax benefits for crypto exchanges.
Reportedly, they said that “cryptocurrency transaction brokerage is not effective in generating added value.”
“While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security. “We’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention and investor protection. The bill should be passed as soon as possible,” said Hong Seong-ki, the head of SoKor’s cryptocurrency response team.
As of this writing, Bitcoin is down by as much as 6 percent and is currently at $7,535.77.