Bitcoin Prices Fall Below $9000

Investing, News | February 2, 2018 By:

Bitcoin has dropped below $9,000 for the first time since November 2017, reaching as low as $8,280. Other cryptocurrencies, including ethereum, Ripple XRP, and Bitcoin Cash have also racked up double-digit declines.

Bitcoin’s market cap share has dropped to 35% since its peak of 65% in December 2017. The market cap of all cryptocurrencies fell to under $500 billion from more than $800 billion in January.

Bitcoin’s price plunge has many factors, including government regulatory crackdowns, questions on price-fixing, normal momentum swings, and general investor caution.

Typical of the government-driven problems was a comment from Arun Jaitley, India’s finance minister, who said the country’s “government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.”

Reports about possible price manipulation by two major exchanges, Bitfinex and Tether, as well as Facebook’s announcement that it would ban all ads that promote cryptocurrencies, also helped to spook cryptocurrency markets this week.

Financial regulators have repeatedly warned of a bitcoin bubble after the price of the cryptocurrency surged last year by more than 900%.