Bitcoin prices reportedly fell by around 9% this week to around $8,000 after search engine provider Google Incorporated declared that it soon intends to institute a complete ban on advertisements for the global crypto-currency.
According to a Wednesday report from CNBC, Google Incorporated is the world’s largest online ad provider and revealed that its prohibition is to cover ‘crypto-currencies and related content’ and be instituted in June as part of an update to its financial services policies.
Recent weeks have reportedly been tough for Bitcoin with its price decreasing by about $2,000 last week alone after the United States Securities and Exchange Commission regulator revealed that it would be expanding its scrutiny of crypto-currency exchanges. The reputation of the digital payments system was moreover not helped following a recent disclosure by Hong Kong-based exchange Binance that some of its accounts had been compromised while earlier this week saw the House Financial Services Committee of the United States House of Representatives purportedly hold a hearing into the innovation and associated initial coin offerings.
The move from Google Incorporated reportedly follows a similar decision in January from Facebook, which is the second largest online add provider on the planet, that saw the social networking service institute a ban on the advertising of ‘binary options, initial coin offerings and crypto-currency’. This move purportedly sent Bitcoin prices tumbling by 12% with the media giant subsequently explaining that the shift was due to the fact that crypto-currencies are ‘frequently associated with misleading or deceptive promotional practices’.
Far from being downbeat about the recent bans, Brian Kelly, Chief Executive Officer for global investment management firm BKCM, reportedly told CNBC that these would prove to be ‘a good thing for the industry’ as Bitcoin ads with Google Incorporated and Facebook ‘were always a red flag for me’.
“It’s not having any impact on price,” Kelly reportedly told the news service. “Selling is driven by fear of another China ban, [which is] supposedly coming in next 24 hours. My view is it will be a nothing burger since China has been banning Bitcoin since 2013.”
Alongside Bitcoin, CNBC reported that the prices for numerous other crypto-currencies also fell following the news from Google Incorporated including Ethereum, which experienced a 9% decline to around $627, while Ripple saw its valuation stand 8.6% lower at near 72 cents.