Bitcoin bubble shows signs of bursting

Largest digital currency broke below $8,000 for the first time since November; it's down more than 50% from its December peak

Feb 2, 2018 @ 11:05 am

By Bloomberg News

Bitcoin whipsawed investors, falling below $8,000 for the first time since November before recovering most of today's losses, as a miserable 2018 continued for cryptocurrencies, with investors confronting a mounting list of concerns about the future of the industry.

Since reaching a record high of $19,511 on Dec. 18 shortly after the introduction of regulated futures contracts in the U.S., bitcoin has wiped out more than half its value amid waves of negative news. Setbacks ranged from escalating regulatory threats from authorities around the world, including India, South Korea, China and the U.S., and a record $500 million heist at Japanese exchange Coincheck Inc., to fears of price manipulation and Facebook's ban on cryptocurrency ads.

Japanese authorities raided Coincheck's offices Friday morning, a week after the robbery, hauling out documents and computers as evidence. The inspection was conducted to ensure security for users, Finance Minister Taro Aso said.

"Bitcoin is in trouble," Lukman Otunuga, a research analyst at foreign exchange broker Forextime Ltd, wrote in a note Friday. "Price action suggests that bears are clearly in control, with further losses on the cards as jitters over regulation erode investor appetite further."

The largest digital currency dropped as much as 16% to $7,643, before trading at $8,715 at 9:52 a.m. in New York, according to consolidated Bloomberg pricing. Bitcoin is down 21% on the week. Rival coins Ripple, Ether and Litecoin tumbled at least 18% as losses continued to spread across cryptocurrencies.

(More: How bitcoin and blockchain will change the world)

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

5 tech innovations you can't afford to ignore

Technology innovation is always top of my at Pershing. What does Pershing have on tap for 2018 and beyond.

Latest news & opinion

Small broker-dealers seek legislative relief from annual audits

Bills introduced in House, Senate would remove PCAOB requirement.

Meet our new 40 Under 40s

For a fifth year, InvestmentNews is proud to shine a spotlight on the amazing accomplishments and potential of top young financial professionals.

Merrill re-evaluates commission ban in retirement accounts

The wirehouse's wealth management group announces a fresh look at the ban now that the DOL rule is on the brink of death.

10 biggest retirement mistakes

Adhere to enrollment deadlines and distribution rules or pay a hefty penalty.

DOL fiduciary rule on brink of death as key deadline passes

Justice Department didn't petition the Supreme Court to rehear the case. A mandate from the 5th Circuit would finally lay the fiduciary rule to rest.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print