Bitcoin continued its downward trend, dropping below $8000, amid increasing negative sentiments that prevailed in the cryptocurrency market including regulatory concerns and Google Ad ban. All major digital currencies were in the red.
Bitcoin, which was around $8,729.70 around 7.30 am ET on Wednesday, is currently trading at $7,854.81, down 14.5 percent over the last 24 hours. Ethereum, the second biggest cryprocurrency, is down 15.5 percent at $585.14; and Ripple is down 17.5 percent at $0.65, according to Coinmarketcap.
Regulatory authorities around the world are discussing strict regulation for bitcoin and other cryptocurrencies. Commodity Futures Trading Commission chief called for self regulation of the industry; International Monetary Fund Chief Christine Lagarde urged people responsible to develop regulatory frameworks to meet the new vulnerabilities created by the rapid growth of crypto-assets; China is planning to establish a blockchain standardization committee.
The biggest blow to the digital currencies came from Google, the world’s largest online ad provider, which announced the ban of advertisements promoting cryptocurrencies and related content including initial coin offerings or ICOs, exchanges, and wallets from June.
Facebook Inc., the second largest ad provider, had taken a similar stance in January, banning all adverts promoting cryptocurrencies. The announcement was after the significant growth in adverts for cryptocurrency-related investments, most of which were feared to be scams. The value of bitcoin had declined around 12 percent after this.
Cryptocurrencies, whose value had peaked in late last year, had plunged sharply in early February on massive sell-off amid talks of possible regulatory actions around the world.
Bitcoin’s price in December 2017 was as high as $20,000, which nosedived to $11,000 late January before sliding again to near $6,000 in the first week of February. Later, it managed to recoup its lost ground to trade around $11,000 last week.
by RTT Staff Writer
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