Bitcoin tumbles on threat of regulation

The value of Bitcoin tumbled below $12,000 yesterday as the prospect of a regulatory crackdown saw investors take fright from the cryptocurrency.

Bitcoin is still significantly higher than its $900 position recorded in January 2017, but has fallen from last month’s high of $20,000.

Analysts put the fall down to regulatory concerns in South Korea, China and Europe.

Neil Wilson, senior market analyst at ETX Capital, said: “Bitcoin faces a regulatory crunch sooner or later and increasingly we see signs of this starting to bite following South Korea’s tentative plans to ban trading on cryptocurrencies and China’s move to shutter mines.

“Latest developments suggest more regulatory pressures.

“China is said to be targeting websites and mobile apps that offer exchangelike services, in a bid to block access to platforms that deliver centralised trading on cryptocurrencies.”

Germany’s Bundesbank has also called for global regulation of Bitcoin, while France’s finance minister wants tougher rules for cryptocurrencies.

Last week US billionaire investor Warren Buffett ruled out a foray into cryptocurrencies, warning the Bitcoin boom will “come to a bad ending”.

The chairman and chief executive of Berkshire Hathaway has joined the chorus of voices criticising the digital currency, which endured a rollercoaster ride at the tail end of last year.

His comments came just a day after JP Morgan chief executive Jamie Dimon said he regretted calling Bitcoin a “fraud”.

The Wall Street boss was one of the most high-profile critics of the digital currency, saying he would fire employees trading the digital currency.