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Bitcoin dives below $7,000 for the first time since November 15

Feb 6, 2018, 00:00 IST

MI

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  • Bears are storming the bitcoin market Monday and the price dipped below $7,000 for the first time since November 15.
  • The cryptocurrency was trading at $6,986 a coin at 1:17 p.m. ET, according to Markets Insider data.


The bitcoin bear market has extended into new territory.

The cryptocurrency, which gripped the attention of the markets when it soared to almost $20,000 a coin, was trading below $7,000 on Monday for the first time since November 15, according to data from CoinMarketCap.

Bitcoin has had a rough start to 2018, hit by fears of a regulatory crackdown and slipping Asian volumes.

At last check, the digital currency was trading down 14.7% against the dollar at $6,986 a coin, according to data from Markets Insider.

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The cryptocurrency market appears to be underpressure because of a number of announcements by major banks that they will ban the use of their credit cards to buy bitcoin and other digital currencies. In the US, JPMorgan Chase, Bank of America, and Citigroup have announced bans, while Lloyds Bank is expected to do the same in the UK.

Confidence has also been dented by reports China is planning a ban on websites related to intial coin offerings and other forms of cryptocurrency trading.

"To prevent financial risks, China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs," an article in Financial News said, according to a report in the South China Morning Post.

More concerns emerged about the sector last week as Facebook banned cryptocurrency advertisements and US regulators began investigating Tether, a cryptocurrency that some fear has been used to inflate the value of bitcoin.

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