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Thursday 16 August 2018

Bitcoin falls below $10,000 as sell-off continues

Bitcoin was trading 13% lower at $9,769, according to Coindesk data.

Bitcoin value
Bitcoin value

By Ravender Sembhy, Press Association City Editor

The value of Bitcoin dropped below $10,000 as a prolonged sell-off of the cryptocurrency continued on Wednesday.

Bitcoin was trading 13% lower at $9,769, (£7,065) according to Coindesk data, a dramatic fall from its December highs of nearly $20,000 (£14,465).

It represents a more than 50% fall in the space of a month.

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

Neil Wilson, senior market analyst at ETX Capital, said: “Bitcoin’s rout continued and the break below $10k marked an important breach of key technical and psychological levels.

“The move means we have seen a 50% fall from the December peak when it was threatening $20k.

“This bout of selling appears to have been sparked by a tightening of the regulatory noose on the wider cryptocurrency market.

“In addition to signals that South Korea and China may ban trading on cryptocurrencies, we have heard comments from Russian leader (Vladimir) Putin that the country will seek to regulate the market more tightly.”

Mr Wilson described the collapse as a “tipping point” for Bitcoin, adding that it could see a move down to the $8,000 level.

However, it remains significantly higher than its $900 position recorded in January 2017.

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 Warren Buffett ruled out a foray into cryptocurrencies, warning that 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 2017.

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

Press Association

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