Bitcoin Plunges Below $7,000
CryptoBit News Today2 min read
Bitcoin fell over $1,200 from its opening price of $8,186.65, hitting a low of $6,853.53 during early afternoon trading in New York on the Luxembourg-based Bitstamp exchange. Bitcoin dropped nearly 9 percent from its opening price of roughly $8,250 on Monday, continuing a five-day decline as actions by banks and government regulators intensified.
Other digital currencies take a tumble
The increased scrutiny on bitcoin and its brethren has also battered rival coins. Total cryptocurrency market capitalization dropped to around $332 billion, according to data from CoinMarketCap.
Among the hard-hit "alt-coins," is Ethereum, the second largest cryptocurrency by market cap. Ethereum fell from roughly $880 to $738.36 over a 24-hour span. The token was trading at $748 after shedding about 15 percent over the previous day. The drop has pushed Ethereum into negative territory for 2018.
Banks clamp down on credit card purchases
Adding to the downward pressure on bitcoin in Monday's session, major credit card issuers cited concerns over the lenders being held liable and have imposed bans on purchasing it with credit cards. Financial institutions including J.P. Morgan, Citigroup, and Capital One have also prohibited customers from using credit cards to buy cryptocurrencies. Lloyds Banking Group and U.S. banking giant Bank of America have announced similar restrictions. Those actions come on the heels of China's harsh measures against cryptocurrencies and India's current plans to make them illegal in its payments system.
Analysts believe trouble could lie ahead for the digital coin
The total value of bitcoin in circulation stands at roughly $125.8 billion. That decline has cost bitcoin investors dearly.
Bitcoin's value has already sunk by about 65% since its record high near $19,511 in December.
Following a surge of more than 1,300 percent in 2017, bitcoin has surrendered about half of its value in 2018. Craig Erlam, an analyst at currency broker Oanda, said persistent negative news and talk of heightened regulation have worsened the decline since mid-December.
Investors are also troubled by ongoing worries that bitcoin prices could be artificially inflated by another cryptocurrency called Tether.
One way or another, it seems like the cryptocurrency is still facing questions over its long-term viability.
