Price of Bitcoin Drops Below $7,000

Today, the price of bitcoin has dropped by more than 10 percent to mark a three-month low as cryptocurrencies endure attacks from all sides.

At around 6 in the evening, bitcoin, the world’s largest cryptocurrency was trading at 14.83 percent lower at $6,972.25. During the last month, the value of the digital currency has dropped by more than $10,000, wiping over $150 billion off the market capitalisation of the cryptocurrency.

“To say bitcoin investors have not enjoyed the best start to 2018 would be an understatement, and the cryptocurrency’s struggles have continued today as it dipped under $7,500 for the first time since it first crossed the threshold in November,” stated the managing director at UFX, Dennis de Jong.

The major sell-off arrives following the bans of Virgin Money, Lloyds Bank, and some other investment banks in the United States on customers from purchasing bitcoin and other cryptocurrencies with the use of credit cards.

Read more: Bitcoin and Other Cryptocurrency Credit Card Purchases Banned by Lloyds Bank

Concerns about toughening regulations are also turning the sentiments negative: India, South Korea, and China have continued to talk about stricter regulations. Also, last week, Facebook decided to ban the advertisements that are promoting cryptocurrencies.

It was also reported by Reuters that market regulators in the United States would inform a congressional hearing that is scheduled tomorrow that the demand for digital currencies intensified oversight and could need a new federal regulatory framework.

De Jong was hopeful about the fate of bitcoin, stating: “Bitcoin has bounced back from similar collapses before during its short but volatile history, and it would hardly be a shock if those claiming the bubble has burst are surprised by yet another change in fortunes.”

The chief market analyst of foreign exchange specialists Centtrip, Miles Eakers, however, predicted that the cryptocurrency would continue to drop to $5,000 per coin.

Read more: Bans on Bitcoin Credit Cards Introduced by Bank of America, Citigroup, and JP Morgan