Bitcoin sinks to three-month low
> Below US$6,200 for first time since November, worsened by meltdown on global stock markets
TOKYO: Bitcoin plunged 20% to a threemonth low yesterday, its latest sharp loss following a series of setbacks for the cryptocurrency that, with a collapse across global mainstream markets adding to the selling.
The virtual currency tumbled to US$6,190 (RM24,079) for the first time since the middle of November, according to Bloomberg News, and represents the latest hammering for a unit that saw a stratospheric 26-fold increase last year.
Yesterday’s collapse comes just six weeks after bitcoin hit a record high of US$19,511, fuelled by a flood of speculators looking to make a quick buck, with warnings it could fall another 50%. Since those heady days the cryptomarket – which includes dozens of other units – has been pounded by news of crackdowns by governments including in China, Russia and South Korea, one of the biggest markets for the sector.
On Thursday, India said it would “take all measures to eliminate” cryptocurrencies’ use as part of a payment system and in funding illegitimate activities, while Japanese authorities raided a virtual currency exchange after it lost US$530 million to hackers.
Central bank in Europe, Japan and the US have also flagged concerns about the unit and this week saw several commercial lenders say they would stop allowing their customers to buy bitcoin through their credit cards owing to debt concerns.
Stephen Innes, head of trading for Asia Pacific at Oanda, said “the dynamics behind the moves are regulatory clampdowns and investors losing confidence in crypto”.
The sell-off yesterday was exacerbated by crushing losses on world stock markets, with the Dow on Wall Street suffering its biggest one-day points loss on Monday and wiping out all its 2018 gains.
The global rout comes as panicked investors fret over rising US borrowing costs, leading them to cash in profits after a stellar couple of months that have seen many indices hit record or alltime highs. – AFP