Bitcoin Plunges to a Five-week Low Below $8,000

Bitcoin has dropped to a five-week low of below $8,000 as the cryptocurrency continues to be affected by the negative news.

According to the aggregate index of Coindesk, at around 8 am today, the price of bitcoin was down by 4.51 percent at $7,827.21 per coin. This was approximately $2,000 below the price of bitcoin at the start of the week.

Yesterday, Google announced that it would impose a crack down on advertisements on cryptocurrency and initial coin offering (ICO), or as it dubbed them “unregulated or speculative financial products.” The announcement was made after a move by Facebook in January to do the same.

A research analyst at FXTM, Lukman Otunuga, said that yet another advertising ban has “eroded investor appetite” towards the cryptocurrency.

He added that the move of Google was followed by the International Monetary Fund ordering for a global crackdown on the cryptocurrencies.

Otunuga stated: “The outlook for Bitcoin is looking increasingly gloomy.

“Focusing purely on the technical picture, bitcoin is bearish on the daily charts with $10,000 acting a solid psychological resistance level. Sustained weakness below $8,000 could open a path back towards $7,000 and $6,000, respectively.”

A recent survey discovered that only over half of current investors of cryptocurrencies still seem to be unfazed. According to the research that was conducted by Citigate Dewe Rogerson, Over the next year, 56 percent of investors of cryptocurrencies plan to purchase more, as compared with 31 percent who plan to reduce or retain their exposure.

The price of Bitcoin has shed approximately $12,000 from its high last December of close to $20,000. However, an analyst at eToro, Matthew Newton, said that he remained confident regarding the long-term outlook of the cryptocurrency.

He stated: “Just as we’ve come to expect sharp rises from this market, so too should we expect big falls.”