Bitcoin rate is hovering between 8000 to 9000 USD right now. The reason is legislation on part of India right now which has decided to effectively ban all the cryptocurrencies within its border. News of the clampdown was delivered by finance minister Arun Jaitley in his annual budget speech (PDF) delivered on Thursday.
“The Government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these cryptoassets in financing illegitimate activities or as part of the payment system,” Jaitley said at paragraph 112 of the speech. But the minister added “the Government will explore use of block chain technology proactively for ushering in digital economy.” Courtesy The Register
Earlier cryptocurrencies saw a steep downfall when South Korea and Brazil hinted that both the countries are trying to bring the crypto into the tax net. Another reason quoted by experts at the start of this year for the down surge of all the cryptocurrencies was the start chinese new year which resulted in an increased spending, and hence the value of cryptocurrencies fell subsequently.