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Bitcoin’s crash is turning into one of its biggest ever

The cryptocurrency tumbled almost 20% as crypto backlash accelerates.

Bitcoin tumbled for a fifth day, dropping below $7,000 for the first time since November and leading other digital tokens lower, as a backlash by banks and government regulators against the speculative frenzy that drove cryptocurrencies to dizzying heights last year picks up steam.

The biggest digital currency sank as much as 22% to $6,579, before trading at $7,054 as of 4:08 p.m. in New York, according to composite Bloomberg pricing. It has erased about 65% of its value from a record high $19,511 in December. Rival coins also retreated on Monday, with Ripple losing as much as 21% and Ethereum and Litecoin also weaker.

Read Get ready for most cryptocurrencies to hit zero, Goldman says

“Although no fundamental change triggered this crash, the parabolic growth this market has experienced had to slow down at some point,” Lucas Nuzzi, a senior analyst at Digital Asset Research, wrote in an email. “All that it took this time was a large lot of sell orders.”

Weeks of negative news and commercial setbacks have buffeted digital tokens. Lloyds Banking Group joined a growing number of big credit-card issuers have said they’re halting purchases of cryptocurrencies on their cards, including JPMorgan Chase and Bank of America. Several cited risk aversion and a desire to protect their customers.

SEC Chairman Jay Clayton said he supports efforts to bring clarity to cryptocurrency issues and that existing rules weren’t designed with such trading in mind, according to prepared remarks for a Senate Banking Committee hearing Tuesday on virtual currencies.

Bitcoin’s longest run of losses since Christmas day has coincided with investors exiting risky assets across the board, with stocks retreating globally. Bitcoin so far seems to be struggling to live up to any comparison with gold as a store of value, which is an argument made by some of its supporters. Bullion edged higher as other safe havens — the yen, Swiss franc and bonds — also gained.

Regulators in what have been some of the hottest market overseas are also seeking to gain more control of trading. China will block all websites, including foreign platforms, related to cryptocurrency trading and initial coin offerings in an attempt to finally stamp out speculation in the market, according to a South China Morning Post report.

Meanwhile, North Korea is trying to hack South Korea’s cryptocurrency-related programs to steal digital currencies and has already stolen tens of billions of won worth, Yonhap News reported. And authorities in digital-coin powerhouse South Korea and other countries are weighing increased regulatory scrutiny of the industry, news which helped spark the ongoing selloff.

Yet some Bitcoin stalwarts remain unconcerned.

“There are a few catalysts: people paying taxes, and general mean reversion,” Kyle Samani, managing partner at crypto hedge fund Multicoin Capital, said in an email. “Overall, this is probably healthy given the run up in November-January.”

 © 2018 Bloomberg

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While everyone focus on the Bitcoin crash the stock market is crashing.

Jip, Dow, S&P 500, JSE ALSI… all down. Who’s making money these days?

People in money market and fixed investments at 8%pa no costs.

Yeah all my profits have been wiped clear the past 2 days on both JSE and Crypto…eish. At least I walk out of crypto with all the money I put into it. 0% loss 🙂 whew :))

Markets always crash when I don’t have money and already bought at the top… just my luck!

massive buy opportunity right now for BTC, XRP and Eth. BTC will surpass $30k mark this year as regulatory stability starts to settle into the Chinese, S.Korean and US markets.

At the rate BTC is falling, $1000+ per day, by Monday we will all be able to buy a 1000 BTC each 🙂

No the Chinese have banned all crypto trading and blocked access to crypto sites to everyone in China.

If BTC falls below $5000 miners will not make a profit (mining it) anymore. There is a possibility of miners just shutting their rigs hence no transactions will be processed. If there are miners, it will take VERY long to process…too few miners left.

Miners have been making money since BTC was less than $1000 last year (Jan’17-Feb’17), they’re not just going to pack up and drop everything because it’s dropping below $5000.

Bloomberg New Energy Finance reckons $3k to $6k is the danger zone for miners (real miners) and some already out of the money. More regulations, hikes in electricity tariffs, bans, fraud/market manipulation abounds and waning interest in investing (gambling). Fundamentally worthless, the world is crazy.

@McLeod, maybe at $1000 a year ago but the difficulty has increased and compute power required thus raising this threshold.

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