Bitcoin has had a disastrous week, falling below $8,500 today as investors remain spooked about the future of cryptocurrencies, while rival coins Ethereum, Ripple, and Litecoin have all plunged between 20 to 30 percent each. Bitcoin has been on a hike ever since it became popular later in the year.
Bitcoin has wiped out more than half its value amid waves of negative news, Since reaching a record high of $19,511 on Dec. 18 shortly after the introduction of regulated futures contracts in the U.S., Bitcoin has wiped out more than half its value amid waves of negative news. According to CoinDesk, Bitcoin opened at $9,052 today and hit a low of $7,695. At the time of writing, it had recovered slightly and was trading at $8,403, its lowest price since late November. Bitcoin is extremely volatile and has been declining for the past month.
Other cryptocurrencies including Ethereum, Ripple, and Litecoin have all plunged between 20 to 30 percent each, according to CoinMarketCap. It’s been a jarring turnaround for cryptocurrencies. Bitcoin had a stellar year in 2017, after starting at around $800 in January. Investors bought into the hype, pushing the price up to astronomical levels, with some reportedly even taking out mortgages or betting their entire life savings to invest.
“Bitcoin is in trouble,” Lukman Otunuga, a research analyst at foreign exchange broker Forextime Ltd, wrote in a note Friday. “Price action suggests that bears are clearly in control, with further losses on the cards as jitters over regulation erode investor appetite further.”
Though regulation for cryptocurrencies is still relatively nascent, it’s likely recent developments have continued to rattle investors. India recently said it doesn’t consider Bitcoin to be legal tender, Korea is planning a bill to completely ban domestic cryptocurrency trading, and China is increasingly clamping down on digital currencies. A record $500 million heist at Japanese exchange Coincheck Inc., fears of price manipulation and Facebook’s ban on cryptocurrency ads which is not permanent though.
Cover Source:- shuttershock
News Source:- the verge and bloomberg