Bitcoin dips below $8,000 as concerns mount over regulatory crackdown
Bitcoin continued its downward trajectory this morning, dropping below $8,000, as concerns escalate over a potential regulatory crackdown.
The cryptocurrency was down 11.68 per cent to $7,995.61 at the time of writing, after falling below the £10k mark in the early hours of Thursday morning.
"It has certainly been a horribly bearish trading week for bitcoin, thanks to heightened fears of a regulatory crackdown," said Lukman Otunuga, research analyst at FXTM.
"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, Connor Campbell at Spreadex said the decline in bitcoin's valuation was the day's "biggest story".
"Opening Monday at $11,700 it is now struggling… following a week that dealt blow after blow to the cryptocurrency," he said.
"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."