Bitcoin is dropping amid worldwide regulations surge

This is the year in which BitcoinBitcoin is the first decentralized digital currency. It was created in 2009, by an anonymous founder or group of founders... More (BTCAn abbreviation for Bitcoin.) surpassed $64k and a country adopted it as legal tender. However, this is also the year for Bitcoin regulations worldwide. The cryptocurrencyA digital currency running on a blockchain and built with cryptography. Contrary to central-bank issued currency, cryptocurrency issuance rules are... world is now mainstream enough for governments to notice it. So, they’re keep going with a bunch of new regulations, and even bans. That’s probably why BTC is dropping right now.

If we calculate since the last All-Time-High (ATH) in April, the bitcoin price has decreased by over 50%. Last week hasn’t been so kind either, since BTC seems stuck between $31k and $34k. Some analysts are still bullish, and aiming to over $100k by the end of 2021. Although, some others are striking the current price as “fragile” and don’t think the bulls will come back soon.

We can stick to the facts for now. The exchange Binance, one of the largest worldwide, is having legal issues in several countries. The authorities allege that they don’t have specific permissions to operate in their regions. So far, the list includes Malaysia, United States, United Kingdom, Japan, Singapore, Thailand, Cayman Islands, and, more recently, China, and Italy.

By the way, this fact comes along with the China crackdown on Bitcoin mining and its ban on crypto payments. Besides, they also banned domestic companies from providing services related to Bitcoin.

Beyond these borders, Iran applied a temporary ban on Bitcoin mining, Indonesia banned cryptocurrency payments, and the Indian authorities are still discussing whether to ban digital assets or just regulate them. Spain just tightened their control over cryptocurrency taxes, and so did South Korea.

At least, not everything is bad. According to Glassnode, the Bitcoin hashrate (the miners) is coming back to normal, and the long-term holders are still not selling their BTC.

Some bullish coins: Axie, NEM, and Bakery

While Bitcoin and the top ten cryptocurrencies are being affected by regulations, some other altcoins are thriving. Especially successful lately has been the gaming platform Axie Infinity, which includes two tokens: Small Love Potion (SLP), and the homonymous AXS. The latter reached a new ATH this week ($29+), after an increase of over 81% in the last seven days [CoinMarketCap].

Meanwhile, SLP increased by over 73% in the same period. This isn’t fortuity. Axie Infinity offers rewards to the gamers for breeding, fighting, and exchanging digital critters (NFTs) dubbed “Axies”. It was so profitable that a rural community in the Philippines used it as a source of income.

For its part, NEM (XEM) has increased by over 27% in the last week, and by over 112% in the last month. That’s probably due to the release of its tokenization chain, Symbol, and its recent partnership with the Colombian government. They’re going to use Symbol for its public entities.

Bakery Token (BAKE), from the NFT marketplace on Binance Smart Chain (BSC), is following suit. During the last week, BAKE has increased by over 21%. They were selected recently as one of the best projects on BSC, and the NFTs fever continues.

Featured Image by PRADIP KUMAR ROUT / Pixabay

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