Bitcoin continues to tumble, briefly breaking below $6000

Feb 07, 2018, 01:08
Bitcoin continues to tumble, briefly breaking below $6000

In the United Kingdom the Lloyds group (which includes Lloyds Bank, Bank of Scotland, Halifax and MBNA) and Virgin money have both blocked Bitcoin purchases via their credit cards, as have JP Morgan Chase, Bank of America, and Citigroup in the US. Citigroup, JPMorgan Chase, and Bank of America have all joined the ranks of the companies who have enacted a bitcoin ban.

Since this year has been dominated by negative news for cryptocurrencies, a lot of them are down at least 70 percent from their record highs. The decline of bitcoin seems to be continuing unabated, since mid-December, this week dipping below $6,000, a figure which financial analysts have not reported since November.

The entire cryptocurrency market was in double-digit losses on the day.

Less than two months after Bitcoin's value soared to an all-time high of almost $20,000, the cryptocurrency has started February with an equally impressive fall. One Ripple coin can now be bought for approximately $0.70 or 0.00009879 BTC on major cryptocurrency exchanges including CEX.IO, Altcoin Trader, Kraken and Poloniex.

Monday saw New York's headline index lose 1,175 points, equating to a 4.6% drop, marking the worst single trading session loss in Wall Street history.

"This is an extremely volatile market", said Iqbal Gandham, managing director at trading platform eToro.

The decision on whether to allow credit card users to buy cryptocurrencies is a credit risk decision made by the card-issuing banks, a spokesman for Mastercard said.

Bitcoin and other cryptocurrency enjoyed enormous increases in value in 2017.

But in recent days, bitcoin has gone bust.

Last week's hack of Coindesk in which an estimated half-a-billion dollars' worth of Bitcoins were stolen is just one of many heists in the past, and a trend which is likely to continue moving forward. This has however not changed in February as today Bitcoin went down by 20% to trade below the $7,000 mark.

They claim that bitcoin and other cryptocurrencies will continue to be seen as viable options by global traders irrespective of the clampdown and on-going erosion in price.

China and South Korea have already banned digital currencies, while Japan and Australia have taken steps to tighten Bitcoin regulations.

The heads of the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission are also set to testify before the Senate Banking Committee on Tuesday.