This morning, bitcoin continued its downward trajectory, edging nearer to $8,000, as fears escalate over a possible regulatory crackdown.
At around 10 am, the cryptocurrency was down by 7.1 percent to $8,411.67, after dropping to below the £10k mark during the early hours of Thursday morning.
Yesterday, a research revealed that the losses of bitcoin for January increased up to $44bn.
“It has certainly been a horribly bearish trading week for bitcoin, thanks to heightened fears of a regulatory crackdown,” stated the research analyst at FXTM, Lukman Otunuga.
“The growing confusion revolving around the Indian government’s view on cryptocurrencies sparked uncertainty on Thursday, consequently exposing bitcoin to downside risks. With US regulators closely scrutinising one of the world’s largest digital exchanges and Facebook banning adverts that promote cryptocurrencies, bitcoin is in trouble.
“Price action suggests that bears are clearly in control, with further losses on the cards as jitters over regulation erode investor appetite further. From a technical standpoint, bitcoin is firmly bearish on the daily charts. The breakdown below $9000 may encourage a further decline.”
Meanwhile, Spreadex ‘s Connor Campbell said that the drop in the valuation of bitcoin was the “biggest story” of the day.
“Opening Monday at $11,700 it is now struggling to keep its head above $8,400, following a week that dealt blow after blow to the cryptocurrency,” said Campbell.
“First there was the introduction of new regulations on anonymous trading accounts in South Korea, one of bitcoin’s biggest markets, followed by reports that Facebook would be banning cryptocurrency adverts on its site.
“Now comes the news that bitcoin’s pre-Christmas rise is being investigated by the US Commodity Futures Trading Commission for market manipulation, closing out a horrible few days for the previously ascendant product.”