Bitcoin is in deep trouble, according to the Coinbase price index. The price of the popular digital currency [VIDEO] fell to below $6000, the lowest it has been since November 2017. Bitcoin is now residing at $6,998, with no sign of what the future holds for the popular cryptocurrency.

Bitcoin had its peak back in November, when it reached the high price of $19,000, and has been falling since then.

What is causing the drop in the value of Bitcoin?

There are many factors that could cause Bitcoin to drop, ranging from the prices of graphic cards to the increasing frauds and wallet scams. But this time it seems the issue lies with the increasing grip of regulations on digital currencies.

This fall in the value of Bitcoin comes a day after a decision of some major UK and US banks to ban their customers from using credit cards to buy Bitcoin and other Cryptocurrencies.

UK and US banks aren’t the only ones to blame. China and South Korea decided to ban cryptocurrencies altogether, while Australia and Japan have tightened their regulations on digital currencies.

China is planning on taking these regulations even further by banning access to foreign digital currency markets. It is currently unclear on how they plan on doing this, but this isn’t the first time that the Chinese government decided to clench their steel grip on the financial sector.

EU countries haven’t started banning cryptocurrencies yet, but the financial regulators have started warning investors of possible loses if they buy initial coin offerings, also known as ICO’s.

US is very likely to follow regulations made by other major players, as the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are due to show up before the Senate and testify on the matter of cryptocurrencies. SEC and CFTC are expected to propose increased regulations on the cryptocurrency market to protect the users from fraud and the market from manipulation.

The state of other digital currencies

How are other digital currencies holding up? The short answer – not well. Major cryptocurrencies such as Ethereum, Bitcoin Cash and Litecoin are all seeing drops lately. And at this point, it is unclear what the future holds for the world of digital currencies.

  • Ethereum is currently residing at $716 ($1,255 peak)
  • Litecoin is currently residing at $127 ($366 peak)
  • Bitcoin Cash has dropped to $887 ($4,091 peak)

Reactions to the drop in value of Bitcoin

The public looks divided on the recent state of cryptocurrencies. While the investors, traders, and miners are teeming with rage and sadness over the recent fall of crypto, PC enthusiasts and gamers seem to be happy with this shift.

The digital currency market crash would probably cause the price of graphic cards to revert back to their pre-crypto state, not to mention an increased influx of cheap and used GPU's when miners decide to cut back on expenses.