Bitcoin down 20% to below $6,000

TOKYO: Bitcoin plunged more than 20 percent to fall below $6,000 on Tuesday, its latest sharp loss following a series of setbacks, with a global stock market collapse fueling the selling.

The virtual currency fell to November, according to Bloomberg News, the latest hammering for the cryptocurrency that saw a stratospheric 26-fold rise last year.

Tuesday’s collapse came just six weeks after bitcoin hit a record high of - tors looking to make a quick buck.

Since those heady days, the cryptomarket— which includes dozens of other units—has been pounded by news of government crackdowns, including in China, Russia and South Korea.

India said last Thursday 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 $530 million to hackers.

Central banks in Europe, Japan and the United States have also This week, several commercial lenders said they would stop allowing their customers to buy bitcoin through their credit cards, because of debt concerns.

“The dynamics behind the moves are regulatory clampdowns and in said Stephen Innes, head of trading

Tuesday’s sell- off was exacerbated by crushing losses on world stock markets, with the Dow on Wall Street suffering its biggest one-day points loss and wiping out all its 2018 gains.

Panicked investors are fretting over rising US borrowing costs, after a stellar couple of months that have seen many indexes hit record or all-time highs.

Equities have enjoyed months of surges, fueled by optimism over the US economy, corporate earnings and the global outlook.

“The risk- off tone is hitting bitcoin almost as hard as a global regulator and bank scrutiny,” said Greg McKenna, chief market strategist at AxiTrader.

“The latest dent [on] the cryptospace has banks saying they are shutting down the ability of clients to buy bitcoin with their cards,” he added.

“This could end up a full round trip back into the $1,850/$2,966 region,” McKenna said.