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

INTV

Where in the U.S. are RIAs growing the fastest?

InvestmentNews' deputy editor Robert Hordt talks to senior columnist Jeff Benjamin about his report on how registered investment advisers are faring in different regions of the country.

Latest news & opinion

8 adviser fears for 2019

Interest rates, trade wars and bear markets, oh my! Looking across the industry, here are some of the biggest concerns heading into the new year.

3 big reasons to do a Roth conversion right now

The time is ripe for many to convert a pretax IRA to a Roth.

10 must-know facts about today's 401(k) plans

Here are the latest changes in 401(k) plans across areas such as investments, fees, contributions, investment advice and more.

Questions abound as Ohio National stops commission payments this week

Advisers are grappling with how to proceed, with their clients and their businesses, as the insurer's new annuity trail policy takes effect.

Top 10 RIAs in the South

These are the largest registered investment advisory firms in the Southern U.S., based on AUM.

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