Bitcoin loses 50% in a month as regulators zoom in
Bitcoin tumbled below $10 000, bringing its loss to almost 50% from a record set only a month ago, as increased scrutiny from regulators around the world weighs on the digital-coin craze.
The largest cryptocurrency dropped 10% to $9 610.05 as of 9.33am in New York, its first foray below $10 000 since December 1, according to consolidated pricing data collated by Bloomberg. It has fallen from a record $19 511 on December 18 and seen more than $140 billion shaved off its market value.
The selloff this week brings more trauma to a digital coin market that has lost more than $300 billion in value since January 13. After a dizzying rally pushed Bitcoin higher by 1 400% last year, the latest plunge cast doubt on the viability of cryptocurrencies.
The most recent signs of a regulatory clampdown have come out of Asia, a hotbed of bitcoin trading. In South Korea, regulators said they might shut down cryptocurrency exchanges, while China has intensified curbs on trading of the digital coins. In the US, the Securities and Exchange Commission asked at least 15 funds to pull applications this month for bitcoin-related exchange-traded funds.
This has left speculators struggling to determine when or how market watchdogs may rein in a decentralised industry that derives much of its value from anonymous ownership.
Many assertions that digital coins represent a bubble have triggered double-digit selloffs over the past year, often followed by rebounds. It fell 26% in a week after reaching its peak in mid-December, only to rally 21% in the next 10 days. Since then, it has posted only two gains in eight sessions. Bitcoin’s market value has dropped to about $170 billion from a peak north of $310 billion. – Bloomberg