The price of Bitcoin plummeted even further as Google told the public about their planned crypto ad ban. 1 BTC is currently equal to $8,500 — just a bit higher from its lowest value this year, which was $7,300 in early February.
Google announced their plans last Wednesday and stated that it would soon be part of their financial services update. The update will take effect on June, and will disallow advertising cryptocurrencies and other related content.
Facebook took similar action against cryptocurrency advertisements last January as it announced their ban on advertisements for initial coin offerings, binary options, and cryptocurrencies. Soon after the announcement, the price of Bitcoin fell by 12 percent, proof of how influential the actions were.
Google implemented their own crypto ads ban with the aim to stop the exposure of misleading and deceptive financial products and services. To make things worse, the recent asset freeze of the Securities and Exchange Commission (SEC) added to the “down-time” of Bitcoin last Wednesday.
Despite the negative news, other crypto firm executives like BKCM CEO Brian Kelly approves of the crackdown. Kelly said that the ban on ads is a good thing for cryptocurrencies because crypto-related ads shown on Facebook and Google were mostly deceptive. He also added that it wouldn’t have any impact on the price of cryptocurrencies in the long run.
Kelly reasoned that the price plummet of Bitcoin was because of the reaction of people to the Google announcement. He continued by saying that when news about crypto regulations come out, people start to fear that their digital coins are going to lose their value, and so, they sell them.
The sudden increase in selling volume then disrupts the financial equilibrium in the crypto community, which in turn, causes their prices to go down. The CEO makes sense, knowing that China has banned cryptocurrencies (specifically Bitcoin) since 2013, but the price of BTC is still relatively high.
However, it’s not just Bitcoin that was affected by the surprising turn of events. The prices of other cryptocurrencies like Bitcoin Cash, Ethereum, Tron, Ripple, and NEO all went down that same day. In fact, their priced decreased by over 10%, making it an exceptionally volatile day.