Some technical indicators suggest the rout in bitcoin has further to go
The digital cryptocurrency Bitcoin fell more than 15 percent on to sending to its lowest level since November ranging from a global regulatory clampdown.
On the Luxembourg-based Bitstamp exchange, Bitcoin fell as low as $6,853.53 in early afternoon trading in New York. That marked a fall of more than half from a peak of almost $20,000 hit in December.
This is probably the first time that bitcoin’s value declined in double-digit ever since its slide began from the beginning of this New Year.
Bitcoin’s price dived as low as $6,853.53 on the Luxembourg-based Bitstamp exchange in early afternoon trading on Monday.
Meanwhile other popular like Ethereum, the second largest virtual currency, was last down nearly 19 percent at $703.40, while Ripple, the third largest, last traded at 71 cents, down 14.1 percent.
Stock markets around the world, particularly on Wall Street, have tumbled this week as fears over prospective U.S. interest rate hikes combined with fears that markets were a bit frothy following a strong run over the past year that saw many indexes hit record highs.
This week’s selloff has coincided with a rout in global equities, with markets in Asia extending losses on Tuesday following a white-knuckle day for US stocks.
Some technical indicators suggest the rout in bitcoin has further to go and crypto currency’s Moving Average Convergence Divergence indicator, the most profitable of 22 trading signals tracked by Bloomberg over the past year.
British financial institution Lloyds Banking Group (LLOY.L) mentioned that it was banning clients from utilizing bank cards to purchase bitcoin and India mentioned it was planning steps to make digital currencies unlawful inside its fund’s system and to manage the buying and selling of crypto property.
The last time that happened, in August 2015, the cryptocurrency sank as much as 24% over the following two weeks.