Bitcoin slumps to $10,000, half its peak price, as regulatory fears grow

[snoop1130]

Bitcoin slumps to $10,000, half its peak price, as regulatory fears grow

Tommy Wilkes, Hideyuki Sano

 

FILE PHOTO: Broken representation of the Bitcoin virtual currency, placed on a monitor that displays stock graph and binary codes, are seen in this illustration picture, December 21, 2017. REUTERS/Dado Ruvic/Illustration/File Photo

 

LONDON/TOKYO (Reuters) - Bitcoin skidded a further 12 percent on Wednesday, marking an almost halving in value from its peak price, with investors spooked by fears regulators could clamp down on the volatile cryptocurrency that skyrocketed last year.

 

The price of bitcoin, the world’s biggest and best known cryptocurrency, fell to as low as $10,0000 on the Luxembourg-based Bitstamp exchange, the lowest since Dec. 1.

 

Bitcoin touched a peak of almost $20,000 in December - and indeed crossed over that threshold on some exchanges - but has since been roiled by several large sell-offs.

 

Other cryptocurrencies plunged as well. Ethereum and Ripple were both down heavily after reports South Korea and China could ban cryptocurrency trading, sparking worries of a wider regulatory crackdown.

 

“There is a lot of panic in the market. People are selling to try and get the hell out of there,” said Charles Hayter, founder of Cryptocompare, which owns cryptocurrencies.

 

“You have more regulatory uncertainty...and because of these falls you have these other outfalls,” he said, referring to the collapse of some cryptocurrencies in the recent slump in prices.

 

With South Korea, Japan and China all making noises about a regulatory swoop, and officials in France and the United States vowing to investigate cryptocurrencies, there are concerns that global coordination on how to regulate them will accelerate.

 

Officials are expected to debate the rise of bitcoin at the upcoming G20 summit in Argentina in March.

 

“Cryptocurrencies could be capped in the current quarter ahead of the G20 meeting in March, where policymakers could discuss tighter regulations,” said Shuhei Fujise, chief analyst at Alt Design.

 

At its lows on Tuesday, bitcoin suffered its biggest daily decline in four months. It was a far cry from its peak close to $20,000 in December, when the virtual currency had risen nearly 2,000 percent over the year.

 

Bitcoin has plummeted before. Marc Singer, an adviser at Singer Xenos in Miami, noted bitcoin fell 93 percent in value over a five-month period in 2011. The last time bitcoin more than halved in value was from November 2014 to January 2015.

 

Tuesday’s decline followed reports that South Korea’s finance minister had said banning trading in cryptocurrencies is still an option and that Seoul plans a set of measures to clamp down on the “irrational” cryptocurrency investment craze.

 

Separately, a senior Chinese central banker said authorities should ban centralized trading of virtual currencies as well as individuals and businesses that provide related services.

 

“Bitcoin is deciding whether this is the moment to crash and burn,” said Steven Englander, head of strategy at New York-based Rafiki Capital.

 

“My conjecture is that cryptocurrency holders are trying to decide whether to abandon bitcoin because its limitations mean it will be superseded by better products or bet that it can thrive despite them.”

 

WILD SWINGS

 

Cryptocurrencies enjoyed a bumper year in 2017 as mainstream investors entered the market and as an explosion in so-called initial coin offerings (ICOs) - digital, token-based fundraising rounds - drove demand.

 

While many observers say the recent falls show that the bubble has burst, those backing the nascent markets say that regulation is welcomed and wild price swings to be expected.

 

“The volatility of bitcoin - and other crypto currencies - is an expected, and important, part of the journey to becoming a mature asset class. We expect the volatility to continue throughout 2018 but fundamentally believe that bitcoin is still in a bull market,” said Christopher Keshian, co-founder of $APEX Token Fund.

 

Ethereum, the second largest cryptocurrency by market value, was down 18 percent since Tuesday, according to website CoinMarketCap.

 

Ripple, the third biggest, has lost 25 percent of its value over the past 24 hours and was quoted at $1.03, down from a high of $3.81 on Jan 4.

 

Bitcoin futures maturing on Wednesday on the Cboe Global Markets Inc’s Cboe Futures Exchange were at $10,070, with 1,586 contracts traded, after having opened at $10,850.

 

“The run-up in bitcoin created a mystique of one-way trading which is being shaken, but the pricing requires faith that there will always be demand,” Englander wrote.

 

“This is far from guaranteed given the existence of alternatives with better characteristics.”

 

-- © Copyright Reuters 2018-1-17

 

[Wonderboy]

12% down is nothing. Look at BitConnect, once one of the top 10 cryptos by marketshare. Today as of witing dropped more than 95%: https://coinmarketcap.com/currencies/bitconnect/

 

 

[punchjudy]

The air is coming out of the bubble

[Skeptic7]

10 hours ago, Wonderboy said:

12% down is nothing. Look at BitConnect, once one of the top 10 cryptos by marketshare. Today as of witing dropped more than 95%: https://coinmarketcap.com/currencies/bitconnect/

 

 

Says 'a further 12%'. At nearly $20,000 all-time high to $10,000 is almost 50%. 

 

Still, you may be correct as it has crashed mightily over the years only to recover and climb mightily again. 

 

Time will tell, but this is certainly an over inflated bubble by any definition.

[lucjoker]

Jealousy and fake news ( from banks....)are attacking the new inventions .......The simple man is quickly scared.

But in the end crypto currency will win.

Same as the "e-mails" took over from written letters......the commen people can be dumb ,but not "that"dumb..........

Time to buy !

[Skeptic7]

[shackleton]

Never understood what it was all about  so did not invest

read about those who got in early and made  money  good luck to them

Grips me about those who wished they did but lacked the courage

now are the I told you so and hope it collapses 

[userabcd]

""But in the end crypto currency will win''

 

Win what?

[Wonderboy]

1 hour ago, shackleton said:

Never understood what it was all about  so did not invest

read about those who got in early and made  money  good luck to them

Grips me about those who wished they did but lacked the courage

now are the I told you so and hope it collapses 

I am sure there are many jealous people out there hoping for a collapse, but don't brush off all critics as envious. Myself I have made good money on Bitcoin, but I recognize  that my win is another guy's loss. No money is being made in the system, only redistributed. The winnings are given to those that invested at an auspicious time and taken from those more unfortunate with the timing. All Ponzi schemes crash sooner or later. With shares, at least there is a theoretical possibility that everyone makes an earning.