When Google announced that it would be halting cryptocurrency-related ads in its network, the value of Bitcoin plummeted to 9% or below $8,000. Just last week, its value fell to $9,000 from a high of $11,000 after the Securities and Exchange Commission declared its interest in scrutinizing cryptocurrency exchanges. Adding fuel to the fire was last week’s news of an attempted hack on the Hong Kong-based Binance. A hearing on digital currencies is also set to occur this coming Wednesday at the subcommittee of the House Financial Services.
Prior to Google’s ban, popular social networking site Facebook banned advertisements on “binary options, initial coin offerings and cryptocurrency” – a move that caused Bitcoin’s value to fall 12% in the month of January. Facebook stated that it would no longer allow ads “that are frequently associated with misleading or deceptive promotional practices.”
Besides Bitcoin, the price of other cryptocurrencies fell in double-digit percentages. Litecoin settled at $155 and lost 13%, while Ethereum fell to $582 or more than 17%. The International Monetary Fund included itself in the cryptocurrency chaos when it announced a global regulatory crackdown. The IMF released a paper titled “Addressing the Dark Side of the Crypto World” wherein it addressed governments to issue “regulatory technology and supervisory technology” with the goal to “help shut criminals out of the crypto world.”
However, Brian Kelley, the CEO of BKCM, an investment firm specializing in macro-economics and digital assets, see Google and Facebook’s ban as “a good thing for the industry”. He explained, “Facebook and Google ads were always a red flag for me.” He added, “It’s not having any impact on price.” Kelley blames Bitcoin’s price fall to regulatory fears happening worldwide. He also cites the upcoming ban on bitcoins by China. Still, Kelley sees no major impact on bitcoin as he declared, “My view is it will be a nothing burger since China has been banning bitcoin since 2013.”